As an analyst, you make an adjustment for understated depreciation, increasing the company's Accumulated Depreciation (on non-current assets) by a further 5% of the book value. The tax rate is 30 percent. The adjustment you make in the worksheet is:

a.

Decreases net non-current assets by $30 000 and decreases equity by $30 000.

b.

Decreases net non-current assets by $30 000, decreases equity by $21 000, and decreases deferred tax liability by $9 000.

c.

Increases net non-current assets by $30 000 and increases equity by $30 000.

d.

Decreases net non-current assets by $30 000, decreases equity by $21 000, and increases deferred tax liability by $9 000.

Clear my choice