Use the Following Information for Questions

question 23

Multiple Choice

Use the following information for questions
The following trial balance of Terracota Corp.at December 31, 2010 has been properly adjusted except for the income tax expense adjustment.

Other financial data for the year ended December 31, 2010:
 Included in accounts receivable is $720,000 due from a customer and payable in quarterly instalments of $90,000.The last payment is due December 29, 2012.
 The balance in the Future Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which $30,000 is classified as a current liability.
 During the year, estimated tax payments of $465,000 were charged to income tax expense.
The current and future tax rate on all types of income is 35 percent.In Terracota's December 31, 2010 balance sheet,
-The final retained earnings balance is

• A)$5,551,000.
• B)$6,016,000
• C)$5,135,000.
• D)$6,431,000.

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Definitions:

Problematic Polarity

Problematic Polarity refers to the dichotomy that creates conflict or an imbalance within an individual's worldview, often hindering personal growth or problem-solving.

Responsible

The state of being accountable or liable for something, often related to ethical or professional conduct.

Carefree

A state of being free from worry, stress, or responsibility, often associated with a sense of happiness or ease.

Suppression of Feelings

The conscious or unconscious act of avoiding or denying emotions, which can impact mental health and therapy outcomes.