The Racing Company Had Taxable Income of $12,000 During 2014

question 64

Multiple Choice

The Racing Company had taxable income of $12,000 during 2014.Racing used accelerated depreciation for tax purposes ($3,400) and straight-line depreciation for accounting purposes ($2,000) .Assuming Racing had no other temporary differences,what would the company's pretax accounting income be for 2014?

• A) $1,400
• B) $6,600
• C) $13,400
• D) $17,400

---

Definitions:

Title Search

The examination of public records to determine and confirm a property's legal ownership and find out what claims or liens are on the property.

Fair Housing Act

A federal law in the United States aimed at eliminating discrimination in the housing industry based on race, color, religion, sex, national origin, disability, or family status.

Discrimination

Unfair treatment or prejudicial distinction of individuals based on race, gender, age, or other status instead of individual merit.

Fair Housing Act

A United States law passed in 1968 aimed at eliminating discrimination in the sale, rental, and financing of housing based on race, religion, national origin, or sex.