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Question - A firm reports assets of $7,500 on the Income Statement. On the balance sheet, they report assets of $75,000. Equity of $25,000 and liabilities of $50,000 which includes a deferred tax liability $5,000. If the tax rate is 25%, then how much should equity be after making the adjustment?
a) $10,000
b) $15,000
c) $20,000
d) $30,000
What is the proper segregation of duties between the supervisor, human resources, and payroll processing department for authorization to input changes to pay.
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