What Effect (If Any) Would the Unrealized Profits in Ending

question 44

Multiple Choice

What effect (if any) would the unrealized profits in ending inventory have on income tax expense for 2018?

• A) They would cause a $1,600 reduction in income tax expense.
• B) They would cause a $1,200 reduction in income tax expense.
• C) They would cause a $1,200 increase in income tax expense.
• D)They would cause a $1,600 increase in income tax expense.

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Definitions:

Binocular

Relating to or involving both eyes to achieve a three-dimensional or depth perception.

Pointillism

An artistic technique where small, distinct dots of color are applied in patterns to form an image, exemplified by the work of artists like Georges Seurat.

Gate-control Theory

A theory proposing that the spinal cord contains a neurological "gate" that either blocks pain signals or allows them to continue to the brain.

Sympathetic Nervous System

Part of the autonomic nervous system that controls the body's responses to stress or emergencies, often termed the "fight or flight" response.