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:

Psychoanalysis

Psychoanalysis is a therapeutic approach and theory of mental illness that attributes thoughts and behaviors to unconscious motives and conflicts.

Transference

In psychoanalysis, the tendency for a patient or client to project positive or negative feelings for important people from the past onto the therapist.

Countertransference

In psychotherapy, it refers to the emotions and projections that the therapist may feel towards the patient.

Free Association

A psychoanalytic process in which patients express their thoughts freely, letting their mind wander without censorship, to uncover unconscious thoughts and feelings.