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Prybylos,Inc., owns 90 % of Station Corporation. Both companies have been profitable for many years. During the current year, the parent sold for $100,000 merchandise costing $70,000 to the subsidiary, which still held 20% of this merchandise at the end of the year. Assume that the tax rate is 25 % and separate tax returns are filed. What deferrred income tax asset is created?

A. 0

B. $300

C.$1,500

D. $7,500

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M958763

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