In 2014,The Xavier Company,reported Pretax Financial Income of $400,000

question 48

Multiple Choice

In 2014,The Xavier Company,reported pretax financial income of $400,000.Included in that pretax financial income was $90,000 of nontaxable life insurance proceeds received as a result of the death of an officer;$120,000 of warranty expenses accrued but unpaid as of December 31,2014;and $30,000 of life insurance premiums for a policy for an officer.Assuming that no income taxes were previously paid during the year and assuming an income tax rate of 40 percent,the amount of income taxes payable on December 31,2014,would be

• A) $120,000.
• B) $150,000.
• C) $182,000.
• D) $184,000.

---

Definitions:

Prices Double

A situation where the price level of goods or services increases by 100 percent, leading to potential adjustments in consumer behavior and market dynamics.

Income Triples

A scenario in which an individual's or household's income increases to three times its original amount.

Slope Of Budget Line

The rate at which a consumer can trade one good for another while maintaining the same level of utility.

Price Of Good 1

The amount of money required to purchase a specific good or service, referred to as "Good 1."