What Is the Effect on the Deferred Tax Balance as a Result

question 53

Multiple Choice

What is the effect on the deferred tax balance as a result of the rate change? $$\begin{array} { | l | r | } \hline \begin{array} { l } \text { Opening deductible (taxable) temporary } \\\text { differences }\end{array} & ( 400,000 ) \\\hline \text { Current year deductible (taxable) temporary } & ( 100,000 ) \\\text { differences } & \\\hline \text { Tax rate (prior year) } & 30 \% \\\hline \text { Tax rate (current year) } & 40 \% \\\hline\end{array}$$

• A)100,000 credit
• B)160,000 credit
• C)120,000 credit
• D)200,000 credit

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Definitions:

Lotteries

Games of chance where winners are selected by drawing lots, often used as a means of raising funds.

Stratified Random Sampling

A sampling technique that divides the population into distinct subgroups, or strata, and randomly selects samples from each stratum.

Standard Error

A measure of the variability or dispersion of a sample statistic, such as the sample mean, from the population mean.

Sampling Frame

The master list from which a sample is selected.