Use the Following Information for Questions

question 79

Multiple Choice

Use the following information for questions.
Kraft Company made the following journal entry in late 2010 for rent on property it leases to Danford Corporation.

The payment represents rent for the years 2011 and 2012, the period covered by the lease.Kraft Company is a cash basis taxpayer.Kraft has income tax payable of $92,000 at the end of 2010, and its tax rate is 35%.
-What amount of income tax expense should Kraft Company report at the end of 2010?

• A)$53,000
• B)$71,000
• C)$81,500
• D)$113,000

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Definitions:

Predicate

In logic, it is the part of a sentence or formula that tells something about the subject or assigns a property to the subject.

Subject

The person or thing that is being discussed or described.

Proposition

A statement or assertion that expresses a judgment or opinion which can be either true or false.

Proposition

In logic, a declarative sentence or expression that can be evaluated as true or false, distinct from a question or command.