If the Software Refinement Had Been Capitalized and Amortized Over

question 21

Multiple Choice

If the software refinement had been capitalized and amortized over a three year period beginning in the year the cost was incurred, but was expensed for tax purposes, the deferred tax position at the end of fiscal 2005 would have been:

• A) A deferred tax credit of $2.8M
• B) A deferred tax credit of $3.5M
• C) A deferred tax credit of $5.2M
• D) A deferred tax debit of $4M

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Definitions:

Production

The method of producing goods or services through the integration of different inputs such as work, materials, and technology.

Two Goods

A reference to two distinct products or commodities in economic analysis, often used in discussions of consumer choice and preference.

World Price

The price at which goods are traded internationally, determined by supply and demand in the global market.

Domestic Price

Domestic price is the price of a good or service within a country, influenced by local supply and demand conditions, taxes, and subsidies.