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 $25 million
Valuation allowance of $22million
Deferred tax liability of $34 million
Nileboo:
Deferred tax asset of $78 million
Deferred tax liability of $23 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.