Use the Following Information for Questions

question 20

Multiple Choice

Use the following information for questions.
Lyons Company deducts insurance expense of $84,000 for tax purposes in 2010, but the expense is not yet recognized for accounting purposes.In 2011, 2012, and 2013, no insurance expense will be deducted for tax purposes, but $28,000 of insurance expense will be reported for accounting purposes in each of these years.Lyons Company has a tax rate of 40% and income taxes payable of $72,000 at the end of 2010.There were no deferred taxes at the beginning of 2010.
-What is the amount of the deferred tax liability at the end of 2010?

• A)$33,600
• B)$28,800
• C)$12,000
• D)$0

Understand how to invoke a function and common terminology associated with it.

Grasp the concept of whitespace in C and its components.

Distinguish between built-in and programmer-defined data types in C.

Understand the rules and limitations regarding comments in C programming.

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Definitions:

After-Tax Cost

The net cost of a financial transaction after factoring in the effects of taxes.

Straight-Line Method

A method of calculating depreciation of an asset, where the asset's cost is evenly spread over its useful life, resulting in equal annual depreciation expenses.

Salvage Value

The estimated residual value of an asset at the end of its useful life, often considered for depreciation calculations.

Lease Payments

Regular payments made by a lessee to an lessor for the use of an asset over a specified period.