South, Inc

question 31

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 $10,500.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 21% in both years, what is South's current income tax expense reported on its GAAP financial statements for year 2?

• A)$4,200
• B)$94,500
• C)$105,000
• D)$109,200

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Definitions:

Develop

The process of growth, progress, or improvement in skills, knowledge, or products through stages or phases.

Adult Learners

Individuals beyond the traditional college age who engage in learning activities, often juggling various personal and professional responsibilities.

Robert Gagné's

Pertains to the educational psychologist known for his "Conditions of Learning," a theory that outlines how people learn and acquire skills.

Training Design

The process of creating an instructional blueprint that outlines how a training program will be conducted, including objectives, materials, activities, and assessment methods.