REFERENCE: Ref.07_09
White Company owns 60% of Cody Company.Separate tax returns are required.For 2009,White's operating income (excluding taxes and any income from Cody) was $300,000 while Cody reported a pretax income of $125,000.During the period,Cody paid a total of $25,000 in cash dividends,$15,000 (60%) to White with the remaining going to noncontrolling interest.The income tax rate for both companies is 30%.
-Compute White's deferred income taxes for 2009.
A) $6,000.
B) $2,250.
C) $3,150.
D) $11,250.
E) $21,000.
Correct Answer:
Verified
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Q58: REFERENCE: Ref.07_09
White Company owns 60% of Cody
Q59: REFERENCE: Ref.07_09
White Company owns 60% of Cody
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Q60: REFERENCE: Ref.07_08
Tower Company owns 85% of Hill
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