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Business, 15.04.2020 03:44 ambernolinan

Bart, Inc., a newly organized corporation, uses the equity method of accounting for its 30% investment in Rex Co.'s common stock. During 20X5, Rex paid dividends of $300,000 and reported earnings of $900,000. In addition:• The dividends received from Rex are eligible for the 80% dividends-received deduction.• All the undistributed earnings of Rex will be distributed in future years.• There are no other temporary differences.• Bart's 20X5 income tax rate is 30%.• The enacted income tax rate after 20X5 is 25%.In Bart's December 31, 20X5 balance sheet, the deferred income tax liability should be 10,800$ 9,000$ 5,400$ 4,500

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