A firm employing a focus strategy concentrates on achieving superior performance in an important customer benefit area valued by a large part of the market

Kershaw Mfg. depreciates using the straight-line method for financial statement purposes and an accelerated method for tax purposes. The cumulative difference between the two methods grew in the current year. How would Kershaw ADJUST PRE TAX INCOME from the straight-line to the tax depreciation method?

a. Multiply the current period change in the portion of the deferred tax liability relating to PP&E by the tax rate and add that amount to reported pretax income. b. Divide the current period change in the portion of the deferred tax liability relating to PP&E by the tax rate and deduct that amount from reported pretax income. c. Divide the current period change in the portion of the deferred tax liability relating to PP&E by the tax rate and add that amount to reported pretax income. d. Multiply the current period change in the portion of the deferred tax liability relating to PP&E by the tax rate and deduct that amount from reported pretax income.

Which statement is TRUE regarding the assignment of a lease?

A. The original lessee is the sole party liable for the payment of rent. B. It is the same as a sublease. C. The original lessee would retain a right to use the property for a limited time. D. The entire leasehold is transferred.