On December 31,2015,Big Bear Corporation Reports Liabilities with a Tax

question 93

Multiple Choice

On December 31,2015,Big Bear Corporation reports liabilities with a tax basis of $1,000,000 and a book basis of $1,300,000.There was no difference in the asset basis.The difference in liability basis arose from temporary differences that would reverse in the following years: Assuming a tax rate of 30% for 2015 - 2018 and a rate of 35% for 2019 - 2020,what should Big Bear report on its balance sheet on December 31,2015?

• A)deferred tax liability of $90,000
• B)deferred tax asset of $90,000
• C)deferred tax liability of $93,900
• D)deferred tax asset of $93,900

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Definitions:

Formal Research

A structured process of investigating issues or questions to gain new knowledge, using systematic methods to collect and analyze data.

Routine Business Messages

Routine business messages refer to standard or everyday communications within a business environment, often dealing with operational or administrative matters.

Stylistic Emphasis

The use of specific stylistic elements to highlight or draw attention to important parts of a text or presentation.

Mechanical Means

Methods or techniques that involve machinery or tools to achieve a result.