D'Silva Limited Has a Product Warranty Liability Amounting to $10

question 15

Multiple Choice

D'Silva Limited has a product warranty liability amounting to $10 000.The product warranty costs are not tax deductible until paid out to customers.The company tax rate is 30%.The company has:

• A)a deductible temporary difference of $10 000
• B)an taxable temporary difference of $10 000
• C)a tax base of $10 000
• D)a future deductible amount of $0.

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Definitions:

IT and Internet

The study and application of systems for storing, retrieving, and sending information through computers and telecommunication devices.

Bureaucracy

A system of government or business that is characterized by fixed rules, a hierarchy of authority, and a complex structure of administration and control.

Worker Empowerment

Strategies and practices that give employees authority and power to make decisions and contribute to the company's success.

Vertical Structure

An organizational hierarchy where authority and responsibility flow from top management down through various levels of management.