Use the Following Information for Questions

question 81

Multiple Choice

Use the following information for questions.
Hopkins Co.at the end of 2010, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:

The estimated litigation expense of $1,000,000 will be deductible in 2011 when it is expected to be paid.Use of the depreciable assets will result in taxable amounts of $500,000 in each of the next three years.The income tax rate is 30% for all years.
-Income tax payable is

• A)$0.
• B)$75,000.
• C)$150,000.
• D)$225,000.

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Definitions:

Input

Data or signals that are provided to a system or device for processing.

Commands

Instructions or directives given by a user to a computer or software application to perform a specific task or operation.

Messages

Pieces of communication or information conveyed from one person or entity to another.

Processing

The act of performing a series of operations on data or materials to convert them into a desired form or outcome.