JR Ltd.provided you with the following information: There are no temporary differences.What will be the amount of the tax refund received in 2015 assuming that a policy of tax refund maximization is followed?
A) $32,000
B) $172,550
C) $176,500
D) $80,000

Question

JR Ltd.provided you with the following information:  There are no temporary differences.What will be the amount of the tax refund received in 2015 assuming that a policy of tax refund maximization is followed?
A) $32,000 
B) $172,550 
C) $176,500 
D) $80,000

Quizplus · Accepted Answer

The provided information is likely to be the tax return form reference number. As there are no temporary differences, it indicates that there are no timing differences between accounting profits and taxable income, so the taxable income will be the same as the accounting profits. Thus, the tax refund will be based on the tax rate and the tax paid in advance. However, the question does not provide any information about the accounting profits, tax rate or tax paid in advance, so we cannot calculate the exact amount of tax refund. Therefore, the best choice would be option C, as it is the highest amount among the given choices, and assumes that the policy of tax refund maximization is followed.

JR LtdProvided You with the Following Information: There Are No