During Its First Year of Operations a Company Recorded Accrued

question 59

Multiple Choice

During its first year of operations a company recorded accrued expenses totaling $250,000 for book purposes.For tax purposes,$100,000 of the expenses are deductible during the first year of operations and $150,000 are deductible during the second year of operations.The income tax rate for both years is 45%.The balance sheet at the end of the first year of operations will report a deferred tax

• A)asset of $67,500.
• B)liability of $67,500.
• C)liability of $45,000.
• D)asset of $100,00.

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Definitions:

Purpose-Oriented

Focused on or driven by a specific goal or objective.

Personal Goals

Specific objectives set by an individual, aiming for personal growth or achievement in areas of their life.

Extrovert

A person oriented towards the external world, often characterized by sociability and a desire for external stimulation.

Confidence

The feeling or belief that one can rely on someone or something; firm trust.