In Its First Four Years of Operations Peridot Jewelers Reported

question 76

Multiple Choice

In its first four years of operations Peridot Jewelers reported the following operating income (loss) amounts: There were no other 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 current income tax payable?

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

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Definitions:

Sponge

A simple aquatic creature with a porous body, or a soft, absorbent material used for washing and cleaning.

Type II Alveolar Cell

is a cell in the alveoli of the lungs that produces surfactant to reduce surface tension and prevent lung collapse.

Surfactant

A substance that reduces surface tension, in the lungs it prevents the collapse of alveoli during exhalation.

Gas Exchange

The biological process through which gases (like oxygen and carbon dioxide) are transferred between the bloodstream and the environment.