1. Sweeney Co. began operations in 2017 and reported $225,000 in income before income taxes for the year. Sweeney's 2017 tax depreciation exceeded its book depreciation by $25,000. Sweeney also had 12/31/17 Accrued Revenues of $10,000. Sweeney's tax rate for 2017 was 35%, and the enacted rate for years after 2017 is 40%. What is 2017 Income Tax Expense?

Select one:

a. $66,500

b. $76,000

c. $80,500

d. $104,000

e. $72,500

2.

Trey, Inc. reports a taxable loss of $210,000 for 2017. Its taxable income for the last two years was as follows:

2015 $60,000

2016 $80,000

Trey has no temporary or permanent differences. Trey elects the "carryforward only" provision. Trey expects taxable income in future years and has a tax rate of 30% for all periods affected. The amount that Trey, Inc. reports as a net loss for financial reporting purposes in 2017 is:

Select one:

a. $189,000 loss

b. $168,000 loss

c. $147,000 loss

d. $70,000 loss

e. $210,000 loss