In 2009, Magic Table Inc

question 48

Multiple Choice

In 2009, Magic Table Inc. decides to add a 36-month warranty on its new product sales. Warranty costs are tax deductible when claims are settled. In its financial statements for 2009, Magic Table Inc incurs:

• A)An increase in a deferred tax asset.
• B)A decrease in a deferred tax asset.
• C)An increase in a deferred tax liability.
• D)A decrease in a deferred tax liability.

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Definitions:

Levator Ani Iliococcygeus

A component of the levator ani muscle, which supports the pelvic organs and helps in maintaining fecal continence.

External Urethral Sphincter

A circular muscle that controls urination by constricting or relaxing to allow the flow of urine from the bladder.

Pubococcygeus

A muscle of the pelvic floor that supports the pelvic organs and is involved in urinary control and sexual function.

Occipital Bone

A bone at the lower back part of the skull, contributing to the cranial cavity's posterior wall and base.