In Its First Year of Operations, a Company Reported Taxable

question 75

Multiple Choice

In its first year of operations, a company reported taxable income of $200,000. In its second year the company incurred a $250,000 loss. During these first two years, the tax rates were 30% and 35% respectively. It is now the end of the third year, and the company a taxable income of $260,000. The company carries losses to the earliest year possible. The tax rate is currently 40%. The amount of income tax receivable or payable in the current (third) year is:

• A)$104,000 payable.
• B)$27,500 receivable.
• C)$76,500 payable.
• D)$16,500 payable.

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Definitions:

Organization Lies

Falsehoods or dishonest statements made by an organization, often to protect its interests or image.

Organizational Behavior

The study of how people interact within groups, typically in a work setting, and how this behavior affects the performance of the organization.

Understanding

The ability to comprehend or grasp the nature, significance, or explanation of something.

Management Function

Management Function encompasses planning, organizing, leading, and controlling an organization's resources to achieve specific goals efficiently and effectively.