Company P uses the sophisticated equity method of accounting for its 30% investment in Company S's common stock. During 20X9, Company S reported net earnings of $650,000 and paid dividends of $150,000
Assume that all the undistributed earnings of Company S will be distributed as dividends in future periods. The dividends received from Company S are eligible for the 80% dividends received deduction. Company P's 20X9, tax rate is 30%. In its December 31, 20X9, balance sheet, the increase in the deferred tax liability from these transactions would be ____. a. $7,500
b. $9,000
c. $150,000
d. $30,000
b
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A company seeking investment opportunities has collected the following information
Project A Project B Project C Project D Initial investment $400,000 $250,000 $150,000 $270,000 PV of cash inflows $570,000 $295,000 $210,000 $282,000 Payback period (years) 3.6 3.0 4.75 3.5 NPV of project $170,000 $45,000 $60,000 $12,000 Profitability index 1.43 1.18 1.40 1.04 If the company makes a decision based on the net present value, which project will be selected? A) Project A B) Project B C) Project C D) Project D
Which of the following is NOT a channel intermediary?
A) the supplier of the raw materials used to make glass windows B) the distributor who sells stained glass windows C) the wholesaler who buys the stained glass window from its creator D) the showroom that displays glass windows for customers to see E) the manufacturers' agent who sells the stained glass windows