Phyllis, Inc

question 47

Multiple Choice

Phyllis, Inc., earns book net income before tax of $600,000.Phyllis puts into service a depreciable asset this year, and first year tax depreciation exceeds book depreciation by $120,000.Phyllis has recorded no other temporary or permanent book-tax differences.Assuming that the U.S.tax rate is 21%, what is Phyllis's total income tax expense reported on its GAAP financial statements?

• A)$151,200
• B)$126,000
• C)$100,800
• D)$25,200

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Definitions:

Diagnosis

The process of diagnosing a problem or sickness by looking at the signs presented.

Treatment

The management and care of a patient for the purpose of combating a disease, disorder, or injury, involving a range of medical or psychological strategies.

Study

The act of applying the mind to acquiring knowledge on a subject, through reading, investigation, or practice.

Test-retest Reliability

A measure of the consistency of a psychological test or assessment over time when administered to the same individuals.