Abbot Corporation Reported Pretax Book Income of $500,000

question 47

Multiple Choice

Abbot Corporation reported pretax book income of $500,000. During the current year, the reserve for bad debts increased by $5,000. In addition, tax depreciation exceeded book depreciation by $40,000. Finally, Abbot received $3,000 of tax-exempt life insurance proceeds from the death of one of its officers. Abbot's current income tax expense or benefit would be:

• A)$105,000.
• B)$104,370.
• C)$97,650.
• D)$97,020.

Understand the roles and responsibilities of appellate courts, including how and why they defer to trial court's findings.

Identify and explain the ethical considerations and roles of paralegals and attorneys during a trial.

Describe the structure and sequence of events in a civil trial, including the importance of each stage.

Comprehend the use of leading questions and the strategy behind direct and cross-examinations.

---

Definitions:

Prefrontal Cortex

The front part of the frontal lobe of the brain, involved in decision making, problem-solving, control of purposeful behaviors, consciousness, and emotions.

Temporal Lobe

A region of the brain located beneath the temples, involved in processing auditory information, memory storage, and playing a role in speech and language understanding.

Selective Serotonin Reuptake Inhibitor (SSRI)

A class of drugs commonly used to treat depression and anxiety disorders by increasing levels of serotonin in the brain.

Mood Improvement

A positive change in one's emotional state, leading to feelings of happiness, contentment, or hopefulness.