Use the Following Information for Questions 93 and 94

question 84

Multiple Choice

Use the following information for questions 93 and 94.
Operating income and tax rates for C.J. Company's first three years of operations were as
follows:
-Assuming that C.J. Company opts to carryback its 2015 NOL, what is the amount of income taxes payable at December 31, 2016?

• A) $204,000
• B) $504,000
• C) $369,000
• D) $324,000

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Definitions:

Hydraulic Car Smasher

A heavy-duty machine designed to crush cars into compact sizes using hydraulic pressure for purposes of recycling or disposal.

Marginal Cost

The cost incurred by producing one additional unit of a product or service.

Dispose of Cars

The process of getting rid of old or unwanted vehicles through methods such as selling, recycling, or scrapping.

Production Function

A mathematical representation that describes the relationship between input factors of production (like capital and labor) and the output of goods or services.