单选题
An analyst gathered the following information about a company:
Taxable income is $ 40000.
Pretax income is $ 50000.
Current tax rate is 50%.
Tax rate when the reversal occurs will be 40%.
What is the company" s deferred tax liability at the end of year 1?
【正确答案】
B
【答案解析】The tax rate that should be used is the expected tax rate when the liability reverses. The deferred tax liability will be $10000×40%=$ 4000.