What is the tax expense under the deferral method for FY2017?

Name: What is the tax expense under the deferral method for FY2017?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

According to the deferral method, tax expenses are recognized in the year in which taxable income is earned. In FY2017, the company's taxable income was $275,000. Applying the tax rate of 10%, the tax expense would be $27,500 (10% of $275,000). Therefore, option C is the correct answer.

What Is the Tax Expense Under the Deferral Method for FY2017