The Racing Company Had Taxable Income of $12,000 During 2014

question 64

Multiple Choice

The Racing Company had taxable income of $12,000 during 2014.Racing used accelerated depreciation for tax purposes ($3,400) and straight-line depreciation for accounting purposes ($2,000) .Assuming Racing had no other temporary differences,what would the company's pretax accounting income be for 2014?

• A) $1,400
• B) $6,600
• C) $13,400
• D) $17,400

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Definitions:

Perceived

Refers to how situations, actions, or conditions are interpreted or understood by an individual, often influenced by personal biases or experiences.

Constructive Conflict

A conflict that is managed and leveraged effectively to encourage diversity of thought, innovation, and problem-solving.

Superordinate Goals

Objectives requiring cooperation and collaborative effort among groups or individuals who might otherwise be in conflict.

Collaboration

Working jointly with others, especially in an intellectual endeavor, to achieve a common goal through sharing knowledge, learning, and building consensus.