VB LtdProvided You with the Following Information: There Are No

question 53

Multiple Choice

VB Ltd.provided you with the following information: There are no temporary differences.The deferred income tax benefit of the loss carry forward was set up in 2015 as the probability of realization was greater than 50%.In 2016 a further loss of $140,000 was incurred.Management determined that they were still mor likely than not to realize the loss.The tax rate for 2016 was 45%.What would be the carrying amount of the deferred income tax benefit/loss carry forward on the balance sheet at the end of 2016?

• A)$141,500
• B)$127,600
• C)$273,600
• D)$139,500

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Definitions:

Dominance

The state or condition of having power and influence over others, often observed in social, economic, and ecological contexts.

Economic System

The structure of methods and principles a society uses to produce and distribute goods and services.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment, widespread poverty, and deflation.