The Following Information Is Available for Ryan Corporation: Assets at Cost-$260,000

question 66

Multiple Choice

The following information is available for Ryan Corporation: Assets at cost-$260,000 (8 year life, straight-line depreciation, no salvage value, purchased 2 years ago) ; Accumulated depreciation-$65,000.Accumulated CCA-$105,300; CCA rate-30%; meals and entertainment recorded in the books-$12,000; golf dues paid and expensed on the books-$5,000; pre-tax accounting income-$40,000.No CCA was taken during the current year.Based on this information and a constant tax rate of 45%, which of the following would appear on the statement of financial position as a result of the information given above?

• A)An income tax liability of $45,000.
• B)A deferred tax asset of $3,510.
• C)A deferred tax liability of $18,135.
• D)A deferred tax liability of $3,510.
• E)A deferred tax asset of $18,135.