At the End of 2017, Its First Year of Operations

question 15

Multiple Choice

At the end of 2017, its first year of operations, Rinaldo Corp. prepared the following reconciliation between pre-tax accounting income and taxable income: The estimated lawsuit expense of $750,000 will be deductible in 2019 when it is expected to be paid. The instalment sales will be realized at $300,000 in each of the next two years. The income tax rate is 30% for all years. The deferred tax asset to be recorded is

• A)$ 0.
• B)$45,000.
• C)$90,000.
• D)$225,000.

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Definitions:

Understand Emotions

The ability to recognize, interpret, and respond to the emotions of oneself and others.

Making Decisions

The cognitive process of choosing between different alternatives or options.

Barbara Fredrickson

A renowned psychologist known for her research on positive emotions and their role in human happiness and social connections.

Positive Emotions

Feelings that are generally pleasant and promote well-being, happiness, and fulfillment, such as joy, love, and satisfaction.