REFERENCE: Ref.08_09 Provo,Inc.has an Estimated Annual Tax Rate of 35 Percent in Percent

question 84

Multiple Choice

REFERENCE: Ref.08_09
Provo,Inc.has an estimated annual tax rate of 35 percent in the first quarter of 2009.Pretax income for the first quarter was $300,000.At the end of the second quarter of 2009,Provo expects the annual tax rate to be 32 percent because of anticipated tax credits.Pretax income for the second quarter was $350,000.Assume no items in either quarter requiring the net-of-tax presentation.
-How much income tax expense is recognized in the first quarter of 2009?

• A)$0.
• B)$26,250.
• C)$96,000.
• D)$105,000.
• E)$112,000.

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Definitions:

Outgroup

A group of people perceived as distinctly different from or outside of one's own in-group, often leading to biases or discrimination.

Ingroup

“Us”—people with whom we share a common identity.

Just-world Phenomenon

The belief that the world is inherently fair, and thus people get what they deserve and deserve what they get.

Bystander Effect

A social psychological phenomenon in which individuals are less likely to offer help to a victim when other people are present, under the assumption that someone else will take action.