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

---

Definitions:

Indifference Curves

Curves representing combinations of two goods between which a consumer is indifferent, meaning any combination along the curve gives the same level of satisfaction.

Bundle

In economics, a combination of various goods and services that a consumer might consider purchasing.

Constants

Fixed values in mathematical equations or models that do not change under different conditions.

Indifference Curves

Graphical representations showing combinations of two goods among which a consumer is indifferent, reflecting their preferences.