What Is the Balance of the Deferred Tax Liability Due

question 17

Multiple Choice

What is the balance of the deferred tax liability due to the rate change? $\begin{array}{|l|r|}\hline\text { Opening taxable temporary differences } & 400,000 \\\hline \text { Tax rate (prior year) } & 25 \% \\\hline \text { Tax rate (current year) } & 30 \%\\\hline\end{array}$

• A)100,000 debit
• B)100,000 credit
• C)120,000 debit
• D)120,000 credit

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Definitions:

Emotional Release

The process of letting go of pent-up emotions, which can contribute to a sense of relief or catharsis.

Physical Sensation

The experience of sensory input to the body, such as touch, temperature, pain, or proprioception.

Self-efficacy

An individual's belief in their own capacity to execute behaviors necessary to produce specific performance attainments.

Albert Bandura

A psychologist known for his work on social learning theory and the concept of self-efficacy.