During 2018, its first year of operations, a company recorded depreciation expense of $50,000 for book purposes. For tax purposes during 2018, $100,000 of depreciation expense was deducted. The temporary difference created during 2018 will reverse equally during 2019 and 2020. Book income from operations during the first year was $570,000. The income tax rate is 40%. The income tax expense to be reported in the income statement for the first year of operations is:
A. $248,000.
B. $228,000.
C. $188,000.
D. $208,000.
Answer: B
You might also like to view...
If a customer returns merchandise or is given an allowance for damaged merchandise, which of the following accounts is debited?
a. Sales; b. Accounts Receivable; c. Cash; d. Sales Returns and Allowances; e. Accounts Payable.
Answer the following statements true (T) or false (F)
1. The Equal Pay Act of 1963 focused primarily on issues of race. 2. When determining undue hardship, employers may not consider issues of cost. 3. Name-calling at work can qualify as harassment. 4. An organizational culture that respects diversity should not require extensive planning or effort to bring into being. 5. Every person has been prejudged at some point based on a diversity characteristic.
Upward Communication Orton is a manager at Hardwire Technological Solutions (HTS), a multinational information technology company. Alan and Stephanie work in his team as junior analysts. Stephanie was one of the best performers at HTS. However, her
performance in the last three months has been faltering and is showing no signs of improvement. This concerned Orton, who requested for a one-on-one meeting with Alan and Stephanie, individually. Why did Orton request for a one-on-one meeting with Alan and Stephanie? How did Orton think this will help Stephanie?
Shylock Bank offers a savings account with a nominal rate of 7% and daily compounding. What is the effective rate of the account? (Assume a 365 day year.)
A) 7.25% B) 7.00% C) 7.50% D) 7.10% E) 7.05%