KER Commenced Operations in 2013

question 23

Multiple Choice

KER commenced operations in 2013.The company had recorded an accrual for warranty in its books during the year ended December 31, 2014 amounting to $100,000.During the year 2014, customers required service from goods sold in 2013 amounting to $60,000.No similar expenditures were made during 2013.KER accrued warranty expenses totalling $100,000 for 2013 and 2014.As a result of the information above, what is the amount of deferred taxes that will appear on the 2014 statement of financial position? KER adheres to ASPE and has elected to use the Taxes Payable Method.
Assume a 20% tax rate for both years.

• A)A Deferred tax asset of $8,000
• B)Nil.
• C)A Deferred tax liability of $8,000
• D)A Deferred tax asset of $40,000

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Definitions:

Temperament Characteristics

refers to the fundamental aspects of an individual's personality, such as mood, activity level, and emotional reactivity, that are believed to be biologically based.

Crying

A vocal expression of distress, discomfort, or need, often used by infants as their primary means of communication.

Infant's Development

Refers to the physical, cognitive, emotional, and social growth that occurs in babies from birth to the end of infancy.

Types of Cries

distinct patterns of crying in infants and babies, often reflecting different needs, emotions, or states of discomfort.