Ignoring operating expenses and additional sales in 2014, what deferred tax liability would Isaac report in its year-end 2014 balance sheet?

Question

Quizplus · Accepted Answer

The question only provides information on the deferred tax liability and does not include any information on the deferred tax assets. Therefore, we only need to focus on the deferred tax liability. From the information given, we can see that the deferred tax liability is expected to increase from $36 million to $162 million. The difference between the two amounts is $126 million, which is the deferred tax liability that Isaac would report in its year-end 2014 balance sheet. Therefore, the correct answer is (C) $126 million.

Ignoring Operating Expenses and Additional Sales in 2014, What Deferred