Asked by Robyia Spriggins on May 03, 2024
Verified
What is the deferred tax liability for Sand at December 31,2015?
A) $10,000
B) $15,000
C) $20,000
D) $40,000
Deferred Tax Liability
A tax obligation recognized on a company's financial statements resulting from temporary differences between the tax basis of assets or liabilities and their reported amounts in the financial accounts.
Pre-Tax Book Income
The income an entity has earned before taxes are deducted, as reported in its financial statements, ignoring tax impacts.
Tax Depreciation
The deduction of a tangible asset's cost over its expected life span, used to reduce taxable income.
- Become familiar with the processes involved in calculating and reporting deferred income tax assets and liabilities.
- Employ the comprehension of enforced tax rates for the calculation of deferred tax liabilities or assets.
Verified Answer
Learning Objectives
- Become familiar with the processes involved in calculating and reporting deferred income tax assets and liabilities.
- Employ the comprehension of enforced tax rates for the calculation of deferred tax liabilities or assets.
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