Analysis of the Assets and Liabilities of Baxter Corp

question 43

Multiple Choice

Analysis of the assets and liabilities of Baxter Corp.on December 31,2014,disclosed assets with a tax basis of $1,000,000 and a book basis of $1,300,000.There was no difference in the liability basis.The difference in asset basis arose from temporary differences that would reverse in the following years:

The enacted tax rates are 30 percent for the years 2014-2017 and 35 percent for 2018-2019.The total deferred tax liability on December 31,2014,should be

• A)$105,000.
• B)$93,900.
• C)$90,000.
• D)$69,000.

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Definitions:

Night Shift Work

Employment involving working hours that occur during the night, often affecting sleep patterns and health.

Rotate Shifts

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Intense or highly illuminated lighting conditions, often used for visibility or in therapy to treat certain medical conditions.

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A condition where the heart's ability to pump blood is inadequate, causing fluid buildup in the body.