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

question 38

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 assets total is

• A) $2,977,500.
• B) $2,797,500.
• C) $1,530,000.
• D) $2,247,500.

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Definitions:

Organic Systems

Organizational structures characterized by flexibility, adaptability, decentralized decision-making, and a more holistic approach to management.

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Organic Management Systems

Management practices that are flexible and adaptive, often characterized by a more decentralized structure and a focus on fostering a collaborative and innovative work environment.

Open Communication

The practice of exchanging information, thoughts, and feelings freely in a transparent, honest, and clear manner within relationships or groups.