Sand Engaged in Operations at the Start of 2015 and Reported

question 14

Multiple Choice

Sand engaged in operations at the start of 2015 and reported $550,000 in pre-tax book income for the year. Tax depreciation for Sand exceeded book depreciation by $50,000. The tax rate for 2015 was 30%, and Congress had enacted a tax rate of 20% for the years after 2015.
-What is the deferred tax liability for Sand at December 31,2015?

• A)$10,000
• B)$15,000
• C)$20,000
• D)$40,000

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Definitions:

Rebellious

Characterized by a resistance to authority or control, often manifested through defiant or non-conforming behaviors.

Secure

A term often used in psychology to describe a state of being free from fear or anxiety, or in attachment theory, a healthy attachment style.

Basic Anxiety

A concept introduced by psychoanalyst Karen Horney, referring to feelings of helplessness and insecurity that arise from problematic parent-child relationships during childhood.

Neurosis

A mental health term historically used to describe a range of psychological problems characterized by anxiety, depression, or other feelings of distress.