Davis Company Began Manufacturing Operations on January 2, 2015 $$\begin{array} { l l } 2016 & \$ 7,500 \\2017 & \$ 2,500\end{array}$$

question 92

Multiple Choice

Davis Company began manufacturing operations on January 2, 2015. During 2015 Davis earned pre-tax book income of $85,000 and had taxable income of $75,000. Davis had a temporary difference relating to a prepaid asset that will be expensed as follows for book purposes:
$$\begin{array} { l l } 2016 & \$ 7,500 \\2017 & \$ 2,500\end{array}$$
-Income tax expense for 2015 is

• A)$30,000.
• B)$25,750.
• C)$22,500.
• D)$19,250.

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Definitions:

Sub-Saharan Africa

A geographical area of the African continent that is situated south of the Sahara Desert.

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Farming practices aimed at producing only enough food to feed the farmer's family, with little to none left over for sale or trade.

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The differences in wealth, power, and prestige of different societies relative to their position in the international economy.

Economic Dependency

A situation where an individual, group, or nation relies on another for financial support or resources.