Tate, Inc. owns 80% of Jeffrey, Inc. During the current year, Jeffrey sold merchandise costing $60,000 to Tate for $75,000. At the end of the year, 10% of this merchandise remained in Tate's inventory. The tax rate is 30%.Assuming that a consolidated income tax return is being filed, what deferred income tax asset is created?

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The Answer of Tate, Inc. owns 80% of Jeffrey, Inc. During the current year, Jeffrey sold merchandise costing $60,000 to Tate for $75,000. At the end of the year, 10% of this merchandise remained in Tate's inventory. The tax rate is 30%.Assuming that a consolidated income tax return is being filed, what deferred income tax asset is created?

Tate, Inc Owns 80% of Jeffrey, Inc