Geisler Corp

question 12

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.
Geisler's 2017 journal entry to record its Deferred Tax amounts would include:

• A) a Deferred tax - benefit amount of $62,000.
• B) a Deferred tax - expense amount of $62,000.
• C) a Deferred tax - benefit amount of $72,000.
• D) a Deferred tax - expense amount of $72,000.

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