Tate, Inc Owns 80 Percent of Jeffrey, Inc

Multiple Choice

Tate, Inc. owns 80 percent 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 percent of this merchandise was still being held. The tax rate is 30 percent.
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.