In Its First Four Years of Operations Peridot Jewelers Reported

question 137

Multiple Choice

In its first four years of operations Peridot Jewelers reported the following operating income (loss) amounts: There were no other items affecting deferred income taxes in any year. In 2017, Peridot elected to carry back its operating loss. The enacted income tax rate was 40%. In its 2018 income statement, what amount should Peridot report as income tax expense?

• A) $80,000.
• B) $110,000.
• C) $170,000.
• D) $180,000.

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Definitions:

Short-Run Marginal Cost

The change in total cost associated with producing one additional unit of output, considering some inputs are fixed.

Embryonic Disk

A key structure in early embryonic development from which the embryo begins to form.

Ectoderm

The outermost layer of an embryo in early development, giving rise to the nervous system and external skin layers.

Hypoblast

The layer of cells inside the blastocyst (an early stage of the embryo), which contributes to the formation of the yolk sac and is involved in early embryonic development.