Geisler Corp

question 49

Multiple Choice

Geisler Corp.provided you with the following information for the year ending December 31,2017: Net Income before taxes: $150,000
Depreciation (included in above) $90,000
CCA$250,000
The net book value of the capital assets was $1,100,000,and their UCC was $900,000 on January 1,2017.
A temporary difference of $200,000 is reflected in an accumulated deferred income tax liability (DTL) balance of $90,000 at January 1,2017.
There were no permanent differences.
Taxable income in the three-year carry back period was $400,000.Tax losses are carried back as far as allowable by law.
A tax rate of 45% applies to the current and previous years.
As a result of the company's temporary differences,Geisler's 2017 statement of financial position would show:

• A) a Deferred tax asset of $162,000.
• B) a Deferred tax liability of $162,000.
• C) a Deferred tax asset of $49,500.
• D) a Deferred tax liability of $49,500.

---

Definitions:

Producing Bagels

The process of making bagels, which involves mixing, shaping, boiling and then baking dough, typically in a commercial or artisanal bakery setting.

Total Cost

The complete cost of producing a specific quantity of goods or services, including fixed and variable costs.

Average Fixed Cost

Production's unchanging overheads split by the volume of goods produced.

Fixed Costs

Expenses that do not change with the level of output or sales, such as rent or salaries.