Ballantine Products,Inc

question 85

Multiple Choice

Ballantine Products,Inc.,reported an excess of warranty expense over warranty deductions of $72,000 for the year ended December 31,2014.This temporary difference will reverse in equal amounts over the years 2015 to 2017.The enacted tax rates are as follows:

The reporting for this temporary difference at December 31,2014,would be a

• A)deferred tax liability of $23,400.
• B)deferred tax asset of $23,400.
• C)current deferred tax liability of $7,200 and a noncurrent deferred tax liability of $16,200.
• D)current deferred tax asset of $7,200 and a noncurrent deferred tax asset of $16,200.

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Definitions:

Right-to-Work Laws

Legislation that prohibits union security agreements, allowing employees in unionized workplaces to opt out of joining the union and paying union dues.

Closed Shops

Workplaces where all employees must be members of a specific labor union as a condition of employment, effectively limiting hiring to union members only.

Social Trend

A general direction in which society is changing, often identified by shifts in behavior, attitudes, or cultural norms.

Early Marriages

Marriages that take place at a younger age than is typical in a given society, often associated with various social, cultural, and economic factors.