Q) North Dakota Corporation purchased a machine for $20,000 in January 2017. North Dakota records a full year depreciation on assets in the year of purchase, and their year ends December 31st.. For financial reporting purposes, North Dakota depreciates the machine on a straight-line basis over a four-year period. There is no residual value. For tax purposes, depreciation expense on the machinery is 50% of cost in 2017, 30% in 2018, and 20% in 2019. Pretax accounting income for 2017 was $150,000, which includes interest revenue of $20,000 from municipal bonds. The enacted tax rate is 30% for all years. There are no other differences between accounting and taxable income. Current income taxes payable at December 31, 2017 are: A) $42,000 B) $37,500 C) $43,500 D) $45,000

Q)A result of intraperiod tax allocation is that: A) Large fluctuations in a company's tax liability are eliminated. B) Current year income tax expense is allocated among the income statement items that caused the expense. C) Higher taxes occur in the future. D) Income tax expense in the income statement equals taxes actually paid.