Ignoring Operating Expenses and Additional Sales in 2010, What Deferred

question 14

Multiple Choice

Ignoring operating expenses and additional sales in 2010, what deferred tax liability would Isaac report in its year-end 2010 balance sheet?

• A)$ 54 million
• B)$144 million
• C)$126 million
• D)$180 million.Total future taxable income ($420 million) tax rate of 30% = $126 million.

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Definitions:

Reversible Reaction

A reversible reaction is a chemical reaction where the reactants form products that, in turn, react together to give the reactants back.

Organic Compound

An organic compound is a chemical compound containing carbon atoms bonded to hydrogen atoms, often along with other elements.

Hydrochloric Acid

A strong, corrosive acid primarily found in the stomach, where it aids in digestion by breaking down foods and killing bacteria.

Sucrose

Disaccharide composed of glucose and fructose; table sugar.