Sand Engaged in Operations at the Start of 2015 and Reported

question 101

Multiple Choice

Sand engaged in operations at the start of 2015 and reported $550,000 in pre-tax book income for the year. Tax depreciation for Sand exceeded book depreciation by $50,000. The tax rate for 2015 was 30%, and Congress had enacted a tax rate of 20% for the years after 2015.
-What is the total tax expense for Sand for 2015?

• A)$100,000
• B)$150,000
• C)$160,000
• D)$175,000

---

Definitions:

Subcutaneous Tissue

The layer of tissue directly under the skin, consisting of fat and connective tissues that insulate and protect the body.

Integumentary System

The organ system that protects the body from external damage, consisting of the skin and its appendages like hair, nails, and glands.

Dermal Papillae

Small, nipple-like extensions of the dermis into the epidermis, increasing the surface area for exchange of gases, nutrients, and waste.

Epidermis

The outermost layer of the skin that provides a waterproof barrier and creates our skin tone.