Pretax Accounting Income Is $100,000 and the Tax Rate Is

question 68

Multiple Choice

Pretax accounting income is $100,000 and the tax rate is 40%.Included in income is a $20,000 fine levied for pollution violations and other infractions during the year.In the reconciliation of the statutory and effective rate (beginning with the statutory rate) ,which one of the following amounts would appear?

• A) (.08)
• B) .08
• C) (.20)
• D) (.04)