Analysis of the Assets and Liabilities of Marie Corp

question 4

Multiple Choice

Analysis of the assets and liabilities of Marie Corp. on December 31, 2011, disclosed assets with a tax basis of $1,000,000 and a book basis of $1,300,000. There was no difference in the liability basis. The difference in asset basis arose from temporary differences that would reverse in the following years:

The enacted tax rates are 30 percent for the years 2011-2014 and 35 percent for 2015-2018. The total deferred tax liability on December 31, 2011, should be

• A) $105,000.
• B) $93,900.
• C) $90,000.
• D) $69,000.

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Definitions:

Induction

A reasoning method that makes generalizations based on observations, moving from specific instances to broader generalizations.

Scheffé Test

A statistical post-hoc test used to compare multiple group means simultaneously after an ANOVA to control the type I error rate.

Tukey Test

Statistical procedure used to control familywise error when conducting all possible simple comparisons between groups.

Simple Comparisons

Analytical comparisons between two groups.