Question - A firm reports assets of $7,500 on the Income Statement. On the balance sheet, they report assets of $75,000. Equity of $25,000 and liabilities of $50,000 which includes a deferred tax liability $5,000. If the tax rate is 25%, then how much should equity be after making the adjustment?
a) $10,000
b) $15,000
c) $20,000
d) $30,000