In Its First Year of Operations, a Company Reported Taxable

question 75

Multiple Choice

In its first year of operations, a company reported taxable income of $200,000. In its second year the company incurred a $250,000 loss. During these first two years, the tax rates were 30% and 35% respectively. It is now the end of the third year, and the company a taxable income of $260,000. The company carries losses to the earliest year possible. The tax rate is currently 40%. The amount of income tax receivable or payable in the current (third) year is:

• A)$104,000 payable.
• B)$27,500 receivable.
• C)$76,500 payable.
• D)$16,500 payable.

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Definitions:

Organic Analogy

A concept where societies are compared to biological organisms, highlighting how different parts of a society must function together for overall health and survival.

Social Programs

Government-initiated policies and services designed to improve the welfare of the population, covering areas such as health, education, and social security.

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The number of reported crimes in a given area over a specified period, often used to gauge the level of criminal activity.

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The implementation of stricter punishments or laws as a deterrent against certain behaviors or actions.