单选题 Xanos Corporation faced a 50% marginal tax rate last year and showed the following financial and tax reporting information: Deferred tax asset of $1000. Deferred tax liability of $ 5000. Based only on this information and the news that the tax rate will decline to 40%, Xanos Corporation' s : A. deferred tax asset will be reduced by $ 400 and deferred tax liability will be reduced by $ 2000. B. deferred tax liability will be reduced by $1000 and income tax expense will be reduced by $ 800. C. deferred tax asset will be reduced by $ 200 and the income tax expense will be reduced by $1000.

【正确答案】 B

【答案解析】There is a 20% reduction in the tax rate from 50% to 40%. Hence, the deferred tax asset will be $800 = $1000 × (1 -0.2), the deferred tax liability will be $4000 = $5000 × (1 - 0.2 ) , and the income tax expense will fall by the net amount of the decline in the asset and liability balances( $1000- $200 = $ 800).