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Plutonic Inc

Question 41

Multiple Choice

Plutonic Inc. had $400 million in taxable income for the current year. Plutonic also had an increase in deferred tax liabilities of $50 million and recognized tax expense of $80 million. The company is subject to a tax rate of 40%. The change in deferred tax assets (ignoring any valuation allowance) was a/an:


A) increase of $30 million.
B) increase of $130 million.
C) decrease of $30 million.
D) decrease of $130 million.

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