If tax rate increases, which of the following statement is most likely correct:
company’s net income and equity declineB.
only net income declineC.
only equity decline
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.
老师，请问这题是这样理解的嘛： tax rate上升，导致DTA DTL上升，从而△DTA, △DTL上升，从而影响到了NI和equity