REFERENCE: Ref.07_09 White Company Owns 60% of Cody Company.Separate Tax Returns Are

question 102

Multiple Choice

REFERENCE: Ref.07_09
White Company owns 60% of Cody Company.Separate tax returns are required.For 2009,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 with the remaining going to noncontrolling interest.The income tax rate for both companies is 30%.
-Compute White's deferred income taxes for 2009.

• A)$6,000.
• B)$2,250.
• C)$3,150.
• D)$11,250.
• E)$21,000.

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Definitions:

Leakage Cues

Subconscious signs of hidden emotions or intentions that may leak out through nonverbal behavior.

Chronemics

The study of how people use and structure time.

Proximity

The physical or relational closeness between people or objects.

Concrete

Pertaining to actual things, facts, or physical objects rather than abstractions; characterized by being tangible and solid.