Balchin Limited Had the Following Deferred Tax Balances at Reporting $\bullet$

question 17

Multiple Choice

Balchin Limited had the following deferred tax balances at reporting date:
$\bullet$ Deferred tax assets €12 000
$\bullet$ Deferred tax liabilities €30 000
Effective from the first day of the next financial period, the company rate of income tax was reduced from 40% to 30%. The adjustment to income tax expense to recognise the impact of the tax rate change is:

• A) DR €6000;
• B) DR €4500;
• C) CR €6000;
• D) CR €4500.

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Definitions:

HIV

Human Immunodeficiency Virus, a retrovirus that attacks the immune system, leading to AIDS.

Menstrual Cycle

The monthly series of changes a woman's body goes through in preparation for the possibility of pregnancy.

Estrogen

A collection of steroid hormones responsible for stimulating and preserving female traits in humans.

ATP

Adenosine triphosphate, a molecule that stores and transfers energy within cells.