Giada foods reported $940 million in income before income taxes for 2011, its first year of operations.
tax depreciation exceeded depreciation for financial reporting purposes by $100 million. the company
also had non-tax-deductible expenses of $80 million relating to permanent differences. the income tax rate
for 2011 was 35%, but the enacted rate for years after 2011 is 40%. the balance in the deferred tax
liability in the december 31, 2011, balance sheet is
a. $35 million.
b. $16 million.
c. $40 million.
d. $56 million.

Suppose that the u. s. dollars-mexican pesos exchange rate is fixed by the u. s. and mexican governments. assume also that labor is mobile between the united states and mexico due to low transportation costs. which of the following situations is likely to happen as a result of a simultaneous increase in the demand for u. s. goods and decrease in the demand for mexican goods? (pick mexican unemployment rate increases, and the country undergoes bad economic times for a sustained u. s. unemployment rate increases, and the country undergoes bad economic times for a sustained mexican unemployment rate rises at first, but it soon drops as unemployed mexicans move to the united states for mexican unemployment rate rises at first, but then it drops as mexican pesos depreciate against u. s. dollars.