The estimated litigation expense of $2,000,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $800,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment accounts receivable are classified as $800,000 current and $800,000 noncurrent.
The estimated litigation expense of $2,000,000 will be deductible in 2016 when it is expected to be paid. The gross profit from the installment sales will be realized in the amount of $800,000 in each of the next two years. The estimated liability for litigation is classified as noncurrent and the installment
The income tax expense is
a. 240,000
b. 320,000
c. 360,000
d. 400,000
The
a. 240,000 current
b. 240,000 noncurrent
c. 800,000 current
d. 800,000 noncurrent
The
a. 240,000
b. 480,000
c. 320,000
d. 640,000
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