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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Definitions:

Campus Population

Refers to the total number of individuals within a college or university environment, including students, faculty, and staff.

Totalitarian Society

A form of government in which the state holds total authority over society and seeks to control all aspects of public and private life wherever possible.

North Korea

A country in East Asia, officially known as the Democratic People's Republic of Korea, known for its totalitarian regime.

Citizenry's Life

The collective lifestyle, experiences, and conditions of the citizens living within a particular country or community.