South, Inc

question 17

Multiple Choice

South, Inc., earns book net income before tax of $400,000 in year 1. South acquires a depreciable asset in year 1, and first year tax depreciation exceeds book depreciation by $50,000. At the end of year 1, South's deferred tax liability account balance is $17,500. In year 2, South earns $500,000 book net income before tax, and its book depreciation exceeds tax depreciation by $20,000. South records no other temporary or permanent book-tax differences. Assuming that the U.S. tax rate is 35%, what is South's total provision for income tax expense reported on its GAAP financial statements for year 2?

• A)$7,000
• B)$168,000
• C)$175,000
• D)$182,000

Recognize the legal tools available for planning end-of-life decisions, including durable power of attorney.

Distinguish between sound and unsound mind in the context of will execution and contestation.

Understand the rights of non-direct descendants and unconventional family members in inheritance matters.

Recognize the impact of specific exemptions and protections, such as the homestead exemption, on estate and probate proceedings.

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Personal Communication Preferences

Individual choices regarding the ways in which they prefer to give and receive information in interpersonal interactions.

Infographic

A visual representation of information or data, making complex information easier to understand.

Big Data

Extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.