What Is the Ending Balance of the Current Year Deferred

question 65

Multiple Choice

What is the ending balance of the current year deferred tax liability?

• A)30,000 debit
• B)30,000 credit
• C)150,000 credit
• D)190,000 credit

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Definitions:

Pollution Permits

Marketable permits allowing holders to emit a certain amount of pollution, used as a regulatory tool to control environmental impacts.

Corrective Tax

A tax designed to induce private decision-makers to take account of the social costs that arise from a negative externality.

Government

The system or group of people governing an organized community, often a state, with the authority to make and enforce laws, policies, and decisions.

Tradable Pollution Permits

A regulatory system that allows companies to buy or sell allowances for a specific amount of pollution, encouraging reduction in overall emissions.