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

Calculate and understand the domain and range of a relation.

Understand the different forms of business organizations and their characteristics.

Know the primary roles and responsibilities of key financial positions in a corporation.

Comprehend the taxation differences between corporate and non-corporate entities.

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Definitions:

Earnings

Earnings represent the amount of money that an individual or company receives in return for labor, services, or investment, often measured over a specific period.

Gini Index

A measure of the distribution of income across a population, used to gauge inequality.

Income Inequality

The unequal distribution of income among individuals or groups within a society, often leading to social and economic disparities.

Developing Countries

Nations with a lower level of material well-being, industrialization, and economic development, often characterized by lower income levels and life expectancy.