At the End of 2017, Its First Year of Operations

question 44

Multiple Choice

At the end of 2017, its first year of operations, Gaucho Corp. prepared the following reconciliation between pre-tax accounting income and taxable income: The estimated lawsuit expense of $400,000 will be deductible in 2018 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $300,000 in each of the next three years. The income tax rate is 25% for all years. Gaucho adheres to IFRS requirements. The deferred tax asset to be recorded is

• A)$200,000.
• B)$160,000.
• C)$100,000.
• D)$ 60,000.

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Definitions:

Organizational Commitment

The emotional attachment, identification, and involvement that an employee has with their organization and its goals.

Stakeholder Orientation

A business strategy that considers the interests and needs of everyone who has a stake in the company, including customers, employees, shareholders, and the community.

Feedback

A response provided to input or performance, often aimed at improvement or adjustment.

Special-Interest Groups

Organizations comprised of members sharing common interests or goals that seek to influence public policy and decision-making processes.