[The Following Information Applies to the Questions Displayed Below

question 106

Multiple Choice

[The following information applies to the questions displayed below.]
Michael uses its periodic inventory system and the following information is available:

-What is the cost of goods sold?

• A)$ 9,800
• B)$33,600
• C)$32,200
• D)$43,400

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Definitions:

Deferred Tax Asset

A tax benefit that refers to a reduction in a company's future tax liability due to deductible temporary differences and carryforwards.

FASB

The Financial Accounting Standards Board (FASB) is a private, non-profit organization standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest.

Temporary Difference

A difference that arises between the tax bases of assets or liabilities and their carrying amount in the financial statements, which will result in taxable or deductible amounts in future years.