During Its First Year of Operations a Company Recorded Revenues

question 100

Multiple Choice

During its first year of operations a company recorded revenues totaling $6,000,000 for book purposes.For tax purposes,$2,400,000 of the revenue is taxable during the first year of operations and $3,600,000 is taxable during the second year of operations.The income tax rate for both years is 40%.The balance sheet at the end of the first year of operations will report a deferred tax liability of

• A)$2,400,000.
• B)$1,440,000.
• C)$960,000.
• D)$480,000.

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Definitions:

Action Potential

A rapid rise and subsequent fall in voltage or electrical charge across a cellular membrane, signaling between neurons.

Axon Terminals

The distal terminations of the branches of an axon, responsible for releasing neurotransmitters to signal adjacent neurons.

Parasympathetic

Part of the autonomic nervous system responsible for rest and digest functions, counterbalancing the fight-or-flight responses.

Nervous System

The network of nerve cells and fibers that transmits nerve impulses between parts of the body, enabling communication between the brain, spinal cord, and other areas.