Giada Foods reported $940 million in income before income taxes for 2009, its first year of operations.

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Giada Foods reported $940 million in income before income taxes for 2009, its first year of operations. Tax depreciation exceeded depreciation for financial reporting purposes by $100 million.

The income tax rate for 2009 was 35%, but the enacted rate for years after 2009 is 40%.

The balance in the deferred tax liability in the December 31, 2009, balance sheet is: 

A. $16 million

B. $35 million

C. $40 million

D. $56million

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  answer-question

Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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