On Its Tax Return at the End of the Current

question 107

Multiple Choice

On its tax return at the end of the current year Webnet Inc. has $6 million of tax depreciation in excess of depreciation in its income statement. A disclosure note reveals that $1 million of the $6 million difference will reverse itself next year, and the remainder will reverse over the next 4 years. In the absence of other temporary differences, in the balance sheet at the end of the current year Webnet would report:

• A) Both a current deferred tax asset and a noncurrent deferred tax asset.
• B) A noncurrent deferred tax asset.
• C) Both a current deferred tax liability and a noncurrent deferred tax liability.
• D) A noncurrent deferred tax liability.

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Definitions:

Heritability Estimates

Statistics that describe the extent to which genetic factors contribute to individual differences in a trait or behavior among a population.

Schizophrenia

A chronic and severe mental disorder that affects how a person thinks, feels, and behaves, often characterized by episodes of psychosis.

Incompatible Motivations

Desires or goals that conflict with one another, making it difficult or impossible to achieve them simultaneously.

Behavioural Impulses

Behavioural impulses are spontaneous urges to act in certain ways, often without conscious deliberation, driven by psychological or physiological needs.