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NEW QUESTION 20
A company reported income before taxes of $800,000 for Year 2. The company did not have temporary taxable differences at the end of Year 1 but reported a net deferred tax asset of $6,000 for Year 2. The effective income tax rate is 30 percent. What amount should the company pay as income tax for Year 2?
Answer: C
NEW QUESTION 21
After thorough market research, a company discovers that there are three well-defined customer segments for a new product it plans to release. Customer segment A represents young professionals, who each have a willingness to pay (WTP) of $45. Customer segment B represents college students, who each have a WTP of $25. Customer segment C represents mid-career professionals, who each have a WTP of $100. What price should the company charge for its new product in order to maximize revenues? Assume that each customer segment has the same number of individual customers.
Answer: A
Explanation:
NEW QUESTION 22
Why are ratios important when comparing different companies within the same industry?
Answer: B
NEW QUESTION 23
Current and quick ratio formulas are similar, except that for the quick ratio an analyst will subtract which account from the numerator (current assets)?
Answer: A
NEW QUESTION 24
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