Question: 69. MDB had a $1,200 temporary tax difference for deferred gross margin on instalment sales at the end of 2012. This temporary difference will reverse

69. MDB had a $1,200 temporary tax difference for deferred gross margin on instalment sales at the end of 2012. This temporary difference will reverse equally during 2013, 2014, and 2015. The enacted corporate income tax rate is 25% and Parliament is discussing an increase in the corporate income tax rates for 2014 and 2015 to 35%. The deferred income tax liability related to this temporary difference at the end of 2013 would be: A. $100 B. $300 C. $200 D. $420

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