Marc, Inc., owns 75% of SRS Company. During the current year, SRS reported net income of $415,000 but paid a total cash dividend of only $110,000. What deferred income tax liability must be recognized in the consolidated balance sheet? Assume the tax rate is 40 percent.
A. $25,380.
B. $18,300.
C. $22,140.
D. $41,340.
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