For the year ending December 31, 2018, the RJ Corporation reported book income before taxes of $579,000. During 2018: RJ's book depreciation expense was $25,000 greater than what was allowed for tax purposes due to a reversing difference; RJ accrued $17,750 of warranty expense which is not deductible for tax purposes until 2019; RJ recognized a $29,000 unrealized loss on an investment which is not deductible for tax purposes until the investment is sold; and RJ's book income included municipal bond interest of $19,500. What was RJ Corporation's 2018 income tax expense assuming a tax rate of 40%?
A. $232,500
B. $252,500
C. $215,100
D. $243,800
Answer: B
You might also like to view...
Which of the following statements is true of exculpatory clauses?
A. Exculpatory clauses, when enforced, can effectively relieve a party of liability for the consequences of his own negligence. B. Exculpatory clauses that seek to avoid liability for willful misconduct or fraud, however, are generally enforceable. C. Exculpatory clauses are effective only when the party which benefits by the clause owes a duty to the public. D. Exculpatory clauses are always illegal and cannot be taken up in court.
The most common way of perfecting a security interest is by:
A. filing a financing statement. B. mere attachment of the security interest. C. automatic perfection. D. taking possession of the collateral.
Answer the following statements true (T) or false (F)
The assumption that OPEBs are part of the total compensation package for covered employees clearly stamps them as being attributable to past transactions or events.
Some critics of affirmative action theorize that that minority students are actually harmed by policies, like affirmative action, that allow them to attend an elite school for which they may lack adequate academic preparation. This theory is called:
a. Mismatch theory b. Anti-affirmative action theory c. Do no harm theory d. Elitism theory