Plumas, Inc., owns 90 percent of Santa Cruz Corporation. Both companies have been profitable for...
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Accounting
Plumas, Inc., owns 90 percent of Santa Cruz Corporation. Both companies have been profitable for many years. During the current year, the parent sold for $143,500 merchandise costing $90,000 to the subsidiary, which still held 20 percent of this merchandise at the end of the year. Assume that the tax rate is 40 percent and that a consolidated tax return was filed. What deferred income tax asset amount is created?
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