If the Software Refinement Had Been Capitalized and Amortized Over

Multiple Choice

If the software refinement had been capitalized and amortized over a three year period beginning in the year the cost was incurred, but was expensed for tax purposes, the deferred tax position at the end of fiscal 2005 would have been:

A) A deferred tax credit of $2.8M
B) A deferred tax credit of $3.5M
C) A deferred tax credit of $5.2M
D) A deferred tax debit of $4M