The Chance Company Began Operations in 2014 And, for That

question 77

Multiple Choice

The Chance Company began operations in 2014 and, for that calendar year, reported an operating loss of $200,000. Due to sufficient verifiable positive evidence, no valuation allowance was established to reduce the deferred tax asset as of December 31, 2014. During 2015, Chance reported pretax accounting income of $375,000. Assuming an income tax rate of 35%, what should Chance record in 2015 as income tax payable at the end of 2015?

• A) $ 0
• B) $ 70,000
• C) $ 61,250
• D) $131,250

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Definitions:

Class B Addresses

A range of IP addresses in Internet addressing designated for medium-sized networks, allowing for a significant number of hosts within each network.

Packet Loss

The failure of one or more transmitted packets to arrive at their destination in a network.

Tracert

A Windows command line network troubleshooting command that displays the path a data packet takes through a network, thus allowing you to see where a fault occurs in larger networks. Compare with traceroute, used in macOS and Linux.

Latency

In networking, the amount of delay experienced as a packet travels from source to destination.