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Nespa, Inc., has a deferred tax liability on its balance sheet in the amount of $25 million. A change in tax laws has increased future tax rates for Nespa. The impact of this increase in tax rate will be: A. a decrease in deferred tax liability and a decrease in tax expense. B. an increase in deferred tax liability and an increase in tax expense. C. a decrease in deferred tax liability and an increase in tax expense. |