During Its First Year of Operations, 2010, the Hico Company $\begin{array}{cc}\text { Income Tax Expense } & 42,000 \\\text { Deferred Tax Asset } & 42,000\end{array}$

question 45

Multiple Choice

During its first year of operations, 2010, the Hico Company reported both a pretax financial and a taxable loss of $200, 000.The income tax rate is 30% for the current and future years.Due to a sufficient backlog of sales orders, Hico did not establish a valuation allowance to reduce the $60, 000 deferred tax asset.However, early in 2011, one major customer, representing 60% of the 2011 year-end sales backlog, went bankrupt.Hico now believes that it is more likely than not that 70% of the deferred tax asset will not be realized.The entry to record the valuation allowance would be

• A)
• \(\begin{array}{cc}
• \text { Income Tax Expense } & 42,000 \\
• \text { Deferred Tax Asset } & 42,000
• \end{array}\)
• B)
• \(\begin{array} { c c }
• \text { Income Tax Benefit from Operating } \\
• \text { Loss Carryforward } & 42,000 \\
• \text { Deferred Tax Asset } & 42,000
• \end{array}\)
• C)
• Income Tax Expense \(\quad \) \(\quad \) \(\quad \)\(42,000\)
• Allowance to Reduce Deferred
• Tax Asset to Realizable Value \(\quad \) \(\quad \) \(\quad \)42,000
• D)
• Allowance to Reduce Deferred Tax
• Asset to Realizable Value \(\quad 42,000\)
• Income Tax Expense \(\quad \) \(\quad \) \(\quad \) \(\quad \) \(\quad \)42,000

Understand the concept of reinforcement, including primary and conditioned reinforcers.

Distinguish between different schedules of reinforcement (fixed-ratio, variable-ratio, fixed-interval, variable-interval) and their effects on behavior.

Recognize the applications and effects of positive and negative reinforcements in shaping behavior.

Identify examples of how operant conditioning principles are applied in real-life scenarios.

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Definitions:

Time Series

A sequence of data points, typically consisting of successive measurements made over a time interval.

Moving Averages

A technique used in time series analysis to smooth out short-term fluctuations and highlight longer-term trends by averaging data points over a specified period.

Exponential Smoothing

A forecasting technique that applies decreasing weights to past data, more heavily weighting recent observations.

Recent Data

Information or statistics that have been collected in the near past and are up-to-date.