Tate, Inc. owns 80 percent 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 percent of this merchandise was still being held. The tax rate is 30 percent.
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 percent 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 percent of this merchandise was still being held. The tax rate is 30 percent.
Assuming that a consolidated income tax return is being filed, what deferred income tax asset is created?

Tate, Inc Owns 80 Percent of Jeffrey, Inc