Use the Following Information for Questions $\quad$ $\quad$ $\quad$

question 49

Multiple Choice

Use the following information for questions.
Polis Corp.'s trial balance at December 31, 2020 is properly adjusted except for the income tax expense adjustment.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Polis Corp.
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ Trial Balance
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ December 31, 2020
$\begin{array}{llcc}&\underline{ \text {Dr.} }&\underline{\text {Cr.} }\\ \text { Cash } & \$337,500& \\ \text { Accounts receivable (net) } &1,447,500&\\ \text { Inventory } &1,192,500&\\ \text { Property, plant, and equipment (net) } &4,183,000&\\ \text { Accounts payable and accrued liabilities } &&\$990,500\\ \text {Income taxes payable } &&342,000\\ \text {Future income tax liability } &&37,500\\ \text {Common shares } &&1,675,000\\ \text { Contributed surplus } &&1,340,000\\ \text { Retained earnings, Jan 1,2020} &&2,325,000\\ \text { Net sales and other revenues } &&6,180,00\\ \text { Costs and expenses } &5,040,000&\\ \text { Income tax expenses } &\underline{689,500}&\underline{\quad }\\ &\underline{\$12,890,000}&\underline{\$12,890,000}\\ \text { } &\\ \text { } &\\\end{array}$

Other financial data for the year ended December 31, 2020:
• Included in accounts receivable is $360,000 due from a customer and payable in quarterly instalments of $45,000. The last payment is due December 29, 2022.
• The balance in the future income tax liability account relates to a temporary difference that arose in a prior year, of which $15,000 is classified as a current liability.
• During the year, estimated tax payments of $330,000 were charged to income tax expense. The current and future tax rate on all types of income is 35 percent.

-In Polis' December 31, 2020 statement of financial position, the current liabilities total is

• A) $1,217,500.
• B) $1,347,500.
• C) $1,100,000.
• D) $1,057,000.

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