Hagar Corporation Reported Depreciation of $250,000 on Its 2014 Tax

question 31

Multiple Choice

Hagar Corporation reported depreciation of $250,000 on its 2014 tax return.However,in its 2014 income statement,Hagar reported depreciation of $100,000.The difference in depreciation is a temporary difference that will reverse over time.Assuming Hagar's tax rate is constant at 30 percent,what amount should be added to the deferred income tax liability in Hagar's December 31,2014,balance sheet?

• A) $30,000
• B) $37,500
• C) $45,000
• D) $75,000

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Definitions:

Chromosomes

Thread-like structures located inside the nucleus of animal and plant cells, made of protein and a single molecule of DNA, which carry genetic information.

Sex Characteristics

Physical or physiological traits differentiating the biological sexes, including primary characteristics such as reproductive organs and secondary characteristics such as voice depth and body hair distribution.

Primary Sex Characteristics

The physical features directly involved in human reproduction, such as the ovaries, testes, and genitalia.

Alfred Kinsey

A pioneering American biologist and sexologist who is known for his research on human sexuality and the Kinsey Reports.