During 2014, Epsilon Company had pretax accounting income of $620 . Epsilon's only temporary difference for 2014 was the collection of a receivable that resulted in $220 of income under the installment sales method of revenue recognition that Epsilon uses for tax purposes. The sale was originally made in 2012 and recognized for accounting purposes at that time. Epsilon's taxable income for 2014
would be
a. $400.
b. $640.
c. $660.
d. $840.
D
You might also like to view...
Describe the type of behavior Section 3 of the Clayton Act is designed to attack.
What will be an ideal response?
Which of the following depreciation methods applies a uniform depreciation rate each period to an asset's book value?
a. Straight-line b. Declining-balance c. Units-of-production d. Sum-of-the-years'-digits
In the context of building wealth for retirement, which of the following statements is true of a Rothindividual retirement account (IRA)?
A. The contributions you make to a Roth IRA arenottax deductible at the time you make them. B. Earnings on the contributions you make to a Roth IRA are taxable. C. You need to pay taxes on the distributions you receive from a Roth IRA after you retire. D. There is no limit on the amount that you can contribute each year to a Roth IRA.
Your grandmother just died and left you $47,500 in a trust fund that pays 6.5% interest. You must spend the money on your college education, and you must withdraw the money in 4 equal installments, beginning immediately. How much could you withdraw today and at the beginning of each of the next 3 years and end up with zero in the account?
A. $14,321.05 B. $10,415.31 C. $12,628.56 D. $9,894.54 E. $13,019.14