The Following Information Applies to the Operations of MK Inc

question 133

Multiple Choice

The following information applies to the operations of MK Inc. for 2018 and 2019. Assume a tax rate of 30% for both years.

2018 information:
Sales on account in the amount of $700,000
Warranty expense and associated liability in the amount of $130,000
No other expenses incurred.

2019 information:
Sales on account in the amount of $230,000
Warranty repairs made in the amount of $61,000
No expenses incurred.

What is the amount of MK's deferred tax asset or deferred tax liability for 2018?

• A) $11,700
• B) $39,000
• C) $91,000
• D) $18,300

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Definitions:

Good Dressing Sense

The ability to choose clothing that is appropriate, stylish, and flattering.

Vocal Delivery

The manner in which someone conveys their message through their voice, including tone, pitch, and speed.

Facial Expression

The configuration of the facial muscles to convey emotion or reactions, which plays a significant role in non-verbal communication.

Progress Report

A document detailing the developments, achievements, or setbacks of a project or activity over a certain period.