Illusions Inc

question 47

Multiple Choice

Illusions Inc.just completed its second year of operations and has a deferred tax asset of $47,500 related to a net operating loss of $125,000 from the previous year.In the current year Illusions generates $400,000 in revenues and incurs $250,000 in expenses.There are no permanent or temporary book-tax differences.Assuming the same tax rate as last year,what amount will Illusions record for Income Tax Payable in the current year?

• A)$9,500
• B)$57,000
• C)$152,000
• D)Cannot be determined from the information provided.

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Definitions:

Lack of Participation

The situation where members of a group or community do not engage or contribute to activities or discussions.

Failures of Process

Situations where a process does not achieve its intended outcome, leading to inefficiency or errors.

Strategic Planning Pitfall

Common mistakes or obstacles that can undermine the effectiveness of an organization's long-term planning efforts.

Differentiation Strategy

A competitive approach where a company offers unique products or services recognized as superior by customers, allowing for premium pricing and higher margins.