What Is the Ending Balance of Deferred Taxes A)30,000 Debit
B)30,000 Credit
C)130,000 Credit
D)190,000 Credit

question 16

Multiple Choice

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

• A)30,000 debit
• B)30,000 credit
• C)130,000 credit
• D)190,000 credit

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