Use the Following Information for Questions 70 Through 72

question 34

Multiple Choice

Use the following information for questions 70 through 72.
Lyons Company deducts insurance expense of $126,000 for tax purposes in 2014, but the expense is not yet recognized for accounting purposes. In 2015, 2016, and 2017, no insurance expense will be deducted for tax purposes, but $42,000 of insurance expense will be reported for accounting purposes in each of these years. Lyons Company has a tax rate of 40% and income taxes payable of $108,000 at the end of 2014. There were no deferred taxes at the beginning of 2014.
-What is the amount of income tax expense for 2014?

• A) $158,400
• B) $151,200
• C) $126,000
• D) $108,000

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A professional who supports individuals, families, and groups to cope with challenges and enhance their well-being through a range of services, including counseling and advocacy.

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