Giada foods reported $940 million in income before income taxes for 2011, its first year of operations.
tax depreciation exceeded depreciation for financial reporting purposes by $100 million. the company
also had non-tax-deductible expenses of $80 million relating to permanent differences. the income tax rate
for 2011 was 35%, but the enacted rate for years after 2011 is 40%. the balance in the deferred tax
liability in the december 31, 2011, balance sheet is
a. $35 million.
b. $16 million.
c. $40 million.
d. $56 million.