The Clear Lake Corporation Reported the Following Differences Between Its

question 49

Multiple Choice

The Clear Lake Corporation reported the following differences between its taxable income and pretax financial income for the year ended December 31, 2010: $30, 000 of additional depreciation for tax purposes, $40, 000 of rent collected in advance (taxable when received) , and $38, 000 of tax-exempt municipal interest revenue.Assuming an income tax rate of 30% for all years and a taxable income of $190, 000 for the year ended December 31, 2010, income tax expense for 2010 would be

• A)$54, 000
• B)$65, 400
• C)$71, 400
• D)$78, 400

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Definitions:

SmartArt Shape

A graphical illustration tool within Microsoft Office products that allows users to create professional-looking diagrams and charts.

Move Down Button

A user interface element that allows the user to lower the position of a selected item in a list or structure.

Demote Button

A feature in software that allows users to lower the level or rank of an item within a hierarchical structure or outline.

Reset Graphic

The action of restoring a graphic element or design to its original state or configuration.