If Income Tax Expense Reported on the Income Statement Is

question 6

Multiple Choice

If income tax expense reported on the income statement is $45,000 for 2016, and the tax return for 2016 (the first year) shows an income tax liability of $42,000, the deferred income tax on the balance sheet at the end of 2016 will be which of the following? Assume a 40% tax rate.

• A)A $3,000 liability.
• B)A $3,000 asset.
• C)A $7,500 liability.
• D)A $7,500 asset.

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Definitions:

Antigens

Substances (often proteins) on the surface of cells, viruses, fungi, or bacteria that the immune system recognizes and targets.

Lymphatic Capillaries

Small, thin-walled vessels that are the starting point of the lymphatic system, responsible for the absorption of interstitial fluid and its return to the bloodstream.

Autoimmune Diseases

Conditions where the immune system mistakenly attacks the body's own cells, leading to inflammation and tissue damage.

Antibodies

Substances created by the immune system to detect and render harmless external threats like viruses and bacteria.