问题如下：
If tax rate increases, which of the following statement is most likely correct:
选项：
A.company’s net income and equity decline
B.only net income decline
C.only equity decline
解释：
Answer is A, if tax rate increases, tax expense increase, so net income decline, and net deferred tax liability will increase lead to equity decline.
PZ company has valuation allowance is 1,560 in 2017 and 1,320 in 2018, company report net deferred tax liability is 6,570 in 2017 and 5,550 in 2018, the tax rate is 28%.
If tax rate increases, which of the following statement is most likely correct:
A
company’s net income and equity decline
B
only net income decline
C
only equity decline
解析
Answer is A, if tax rate increases, tax expense increase, so net income decline, and net deferred tax liability will increase lead to equity decline.
我想问一下，这道题怎么理解。valuation allowance改变之后，“Asset= equity + liability”等式发生了怎么样的变化？
deferred tax liability改变之后，“Asset= equity + liability”等式发生了怎么样的变化？谢谢！
