VB LtdProvided You with the Following Information: There Are No

question 91

Multiple Choice

VB Ltd.provided you with the following information: There are no temporary differences.The deferred income tax benefit of the loss carry forward was set up in 2015 as the probability of realization was greater than 50%.In 2016 it was determined that the probability of realization was less than 50%.What would be the carrying amount of the deferred income tax benefit-loss carry forward on the balance sheet at the end of 2016?

• A) $194,100
• B) $0
• C) $220,000
• D) $64,600

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Definitions:

Cost of Capital

Refers to the opportunity cost of making a specific investment, representing the rate of return that could have been earned by putting the same money into a different investment with equal risk.

Short-Term Debt

Obligations or loans that are due to be paid back within a short period, typically one year or less.

Long-Term Debt

Borrowings and financial obligations lasting over one year, used to finance operations or acquisitions.

Capital Budgeting

The method by which a business analyzes prospective large-scale projects or investments.