If a Tax Rate Change from 30% to 25% Results

question 57

Multiple Choice

If a tax rate change from 30% to 25% results in an adjustment to the deferred tax liability account of $50 000,what is (a) the amount of the temporary differences and (b) the type of temporary differences?

• A) (a) $ 1 000 000; (b) taxable temporary differences
• B) (a) $ 1 000 000; (b) deductible temporary differences
• C) (a) $ 50 000; (b) taxable temporary differences
• D) (a) $ 50 000; (b) deductible temporary differences

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Definitions:

Gastric Juice

A digestive fluid formed in the stomach that contains hydrochloric acid, enzymes, and mucus, aiding in the digestion of food.

Absorption

The process by which substances are taken up into, or across, tissues, such as the absorption of nutrients by the intestines into the bloodstream.

Anabolism

The constructive part of metabolism concerned with the biosynthesis of complex molecules from simpler substances within the body.

Catabolism

The breakdown of complex molecules in living organisms to form simpler ones, often resulting in the release of energy.