Question

Brady's listing of deferred tax assets and liabilities includes the following for operations in the tax jurisdictions of Tambura and Nileboo:

Tambura:

Deferred tax asset of $22 million

Valuation allowance of $19 million

Deferred tax liability of $31 million

Nileboo:

Deferred tax asset of $69 million

Deferred tax liability of $20 million

Brady files separate tax returns in Tambura and Nileboo. Brady’s balance sheet would include the following disclosure of deferred tax assets and liabilities:

Multiple Choice

A A deferred tax asset of $21 million.

B . A deferred tax liability of $28 million and a deferred tax asset of $49 million.

C . A deferred tax liability of $34 million and a deferred tax asset of $55 million.

D . A deferred tax liability of $53 million and a deferred tax asset of $74 million.

Answer 1

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