Geisler Corp

question 37

Multiple Choice

Geisler Corp.provided you with the following information for the year ending December 31, 2017: Net Income before taxes: $150,000 Depreciation (included in above) $90,000 CCA$250,000
The net book value of the capital assets was $1,100,000, and their UCC was $900,000 on January 1, 2017.
A temporary difference of $200,000 is reflected in an accumulated deferred income tax liability (DTL) balance of $90,000 at January 1, 2017.
There were no permanent differences.
Taxable income in the three-year carry back period was $400,000.Tax losses are carried back as far as allowable by law.
A tax rate of 45% applies to the current and previous years.
Geisler's 2017 journal entry to record its Deferred Tax amounts would include:

• A)a Deferred tax - benefit amount of $72,000.
• B)a Deferred tax - expense amount of $72,000.
• C)a Deferred tax - benefit amount of $62,000.
• D)a Deferred tax - expense amount of $62,000.

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Definitions:

Commercial Capitalism

An economic system where trade, goods, and capital are privately controlled and operated for profit, characterized by the emergence of market economies and merchant classes.

Trust

Refers to the firm belief in the reliability, truth, ability, or strength of someone or something.

Saloon

A place for drinking alcohol that was especially popular in the United States during the 19th and early 20th centuries, serving as a social hub in towns and cities.

Rising Wages

An economic condition characterized by an increase in the amount of money workers receive for their labor over time.