The Following Information Pertains to Questions

question 8

Multiple Choice

The following information pertains to questions
ABC purchased specialized machinery on January 1,2010 for $2,500.Due to certain restrictions,only 40% of the acquisition cost of the asset is tax deductible.ABC pays tax at a rate of 20%.
-What is the amount of the Deferred Tax Asset or Liability arising from the purchase of this machinery?

• A)a Deferred Tax Asset of $375
• B)a Deferred Tax Asset of $300
• C)a Deferred Tax Liability of $375
• D)a Deferred Tax Liability of $300

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Definitions:

Peripheral Route

A path of persuasion that involves a respondent's passive engagement, where attitudes or decisions are influenced by superficial cues rather than deep processing of information.

Central Route

A method of persuasion that involves deeply processing the content of a message, considering its arguments and evidence.

Sufficiency Threshold

Sufficiency threshold refers to the minimum level of resources, information, or inputs required to achieve a satisfactory outcome or make a decision.

Systematic Processing

A mode of information processing that involves careful and thoughtful consideration of all available information and evidence.