As a result of using accelerated depreciation for tax purposes, The Amin Corporation reported $651 million income tax expense in its income statement, while the actual amount of taxes paid by the company was $721 million.
How did these tax transactions affect the company's balance sheet?
A) Increase deferred tax liability by $70 million
B) Decrease deferred tax assets by $651 million
C) Decrease retained earnings by $651 million
D) Decrease cash by $651 million
E) Both C and D
Correct Answer:
Verified
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