Use the Following Information for Questions 66 and 67

question 112

Multiple Choice

Use the following information for questions 66 and 67.
Mitchell Corporation prepared the following reconciliation for its first year of operations: The temporary difference will reverse evenly over the next two years at an enacted tax rate of 40%. The enacted tax rate for 2015 is 35%.
-What amount should be reported in its 2015 income statement as the deferred portion of income tax expense?

• A) $70,000 debit
• B) $87,500 debit
• C) $70,000 credit
• D) $87,500 credit

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Definitions:

Class Late

The situation of arriving or starting a class beyond the scheduled time.

Selective Perception

The process by which individuals focus on certain stimuli while ignoring others, influenced by their background, experiences, and attitudes.

Categorize

The act of arranging or classifying items, individuals, or ideas into specific groups or classes based on shared characteristics.

Stereotyping

The act of ascribing generalized attributes or behaviors to members of a particular group, often based on preconceptions.