Under the Accrual Method,what Is the Effect of the Current

question 33

Multiple Choice

Under the accrual method,what is the effect of the current year temporary difference in F2014? $$\begin{array} { | l | r | r | r | } \hline & \text { F2013 } & \text { F2014 } & \text { F2015 } \\\hline \text { Deferred tax liability } & 27,000 & & \\\hline \text { Revenue } & & 100,000 & 150,000 \\\hline \text { Taxable income } & & 95,000 & 105,000 \\\hline \text { Tax rate } & 30 \% & 35 \% & 35 \% \\\hline\end{array}$$

• A)4,500
• B)30,500
• C)35,000
• D)39,500

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