Ignoring Operating Expenses and Additional Sales in 2017,what Deferred Tax

question 5

Multiple Choice

Ignoring operating expenses and additional sales in 2017,what deferred tax liability would Isaac report in its year-end 2017 balance sheet?

• A)$ 54 million
• B)$144 million
• C)$126 million
• D)$180 million.

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Definitions:

Ordinary Expense

An expense that is common, accepted, necessary, and appropriate for a business or individual's trade or profession under tax law.

Advertising

The activity or profession of producing advertisements for commercial products or services to increase sales or public awareness.

Property Taxes

Taxes paid by property owners on their real estate and personal property, usually imposed by local governments based on the assessed value of the property.

Flow-through

A business entity that passes income to the owners or investors, avoiding corporate income tax, including S corporations, partnerships, and sole proprietorships.