A Company's Income Statement Reported Net Income of $80,000 During

question 12

Multiple Choice

A company's income statement reported net income of $80,000 during 2016. The income tax return excluded a revenue item of $6,000 (reported on the income statement) because under the tax laws the $6,000 would not be reported for tax purposes until 2017. Which of the following statements is incorrect assuming a 35% tax rate?

• A)Income tax expense on the income statement exceeds the tax liability to the IRS.
• B)The $6,000 of revenue creates a deferred tax liability.
• C)A $2,100 deferred tax liability is reported as of December 31, 2016.
• D)Income tax expense on the income statement is $25,900.

Comprehend the relationship between technology, development, and societal change.

Examine the environmental and health implications of modern living, including structural violence and its outcomes.

Understand the concept and functions of schemas in memory organization.

Grasp the principles of levels of processing and their impact on memory recall.

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Definitions:

Disability Insurance

A type of insurance coverage that provides income in the event a worker is unable to perform their job due to a disability.

Fair Bet

A gambling term where the expected winnings are equal to the expected losses, meaning the bet has no advantage for either the house or the gambler.

Expected Utility

A concept in economics and decision theory that represents the average of all possible outcomes under uncertainty, weighted by their respective probabilities and the utility or satisfaction each outcome provides.

Marginal Utility

The additional satisfaction or benefit a consumer gains from consuming one more unit of a good or service.