Tate, Inc Owns 80% of Jeffrey, Inc

Multiple Choice

Tate, Inc. owns 80% of Jeffrey, Inc. During the current year, Jeffrey sold merchandise costing $60,000 to Tate for $75,000. At the end of the year, 10% of this merchandise remained in Tate's inventory. The tax rate is 30%.Assuming that a consolidated income tax return is being filed, what deferred income tax asset is created?

A) $0.
B) $360.
C) $450.
D) $2,250.
E) $3,600.