(Answered) Question white company owns 60 of cody company separate tax

Accounting

Question: White Company owns 60% of Cody Company. Separate tax returns are required. For 2012, 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 and $10,000 to the non-controlling interest. White paid dividends of $180,000. The income tax rate for both companies is 30%.

Compute White's deferred income taxes for 2013.

A. $6,000.

B. $2,250.

C. $3,150.

D. $11,250.

E. $21,000.

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