Morrisson, Inc

question 2

Multiple Choice

Morrisson, Inc., earns book net income before tax of $500,000. In computing its book income, Morrisson deducts $50,000 more in warranty expense for book purposes than is allowed for tax purposes. Morrisson records no other temporary or permanent book-tax differences. Assuming that the U.S. tax rate is 35% and no valuation allowance is required, what is Morrisson's current income tax expense reported on its GAAP financial statements?

• A)$192,500
• B)$175,000
• C)$157,500
• D)$17,500

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Definitions:

Sexual Contact

Any form of touch or interaction, consensual or not, that is of a sexual nature, potentially including activities from kissing to sexual intercourse.

Hepatitis A

A highly contagious liver infection caused by the hepatitis A virus, often spread through ingestion of contaminated food or water.

Unprotected Sex

Sexual activity without the use of contraceptives or prophylactics to prevent pregnancy and/or sexually transmitted infections (STIs).

Contaminated Food

Food that has been tainted with harmful bacteria, viruses, chemicals, or other substances, posing health risks when consumed.