Reference no: EM132753197

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

Tambura:

Deferred tax asset of $9 million
Valuation allowance of $6 million
Deferred tax liability of $18 million

Nileboo:

Deferred tax asset of $30 million
Deferred tax liability of $7 million

Problem 1: Brady files separate tax returns in Tambura and Nileboo. Brady's balance sheet would include the following disclosure of deferred tax assets and liabilities:

A. a deferred liability of $21 million and a deferred tax asset of $29 million
B. a deferred liability of $27 million and a deferred tax asset of $35 million
C. a deferred liability of $15 million and a deferred tax asset of $23 million
D. a deferred tax asset of $8 million