If Beta Corp's Net Income Is $230,000 and the Tax

question 66

Multiple Choice

If Beta Corp's net income is $230,000 and the tax rate is 40%, then the company's planned operating income is ________.

• A) $322,000
• B) $383,333
• C) $193,200
• D) $552,000

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Definitions:

Land Account

An account on the balance sheet that reports the cost of land owned by a company.

Double-declining-balance

A method of accelerated depreciation that doubles the rate at which an asset's book value declines, compared to straight-line depreciation.

Straight-line Depreciation

A method of allocating the cost of a tangible asset evenly over its useful life.

Financial Accounting

The field of accounting focused on reporting financial information and transactions for decision makers outside the organization.