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:

Unstable Negative Charge

A condition or state where an atom or molecule holds a negative charge that is prone to change or react due to external forces.

Stable Negative Charge

An attribute of particles or objects that possess a charge that does not change sign and remains negative.

Stable Positive Charge

An atomic or subatomic particle's constant state of having more protons than electrons, resulting in a net positive charge.

Unstable Positive Charge

Refers to a positive ion (cation) that lacks stability, often making it highly reactive and short-lived.