What Is the Tax Expense Under the Deferral Method for F2015

question 55

Multiple Choice

What is the tax expense under the deferral method for F2015? $$\begin{array} { | l | r | r | r | } \hline & \text { F2013 } & \text { F2014 } & \text { F2015 } \\\hline \text { Income before tax } & 120,000 & 110,000 & 150,000 \\\hline \text { Taxable income } & 85,000 & 95,000 & 105,000 \\\hline \text { Tax rate } & 30 \% & 25 \% & 35 \% \\\hline\end{array}$$

• A)$27,500
• B)$36,000
• C)$36,750
• D)$52,500