Which of the following occurs when income before income tax from the income statement is less than taxable income from the income tax return filed with the IRS?

Question 10 options:

	Prepaid income tax is credited.
	Deferred tax payable is debited.
	Prepaid income tax is debited.
	Either B or C occurs.

How would a gain on the sale of machinery be reported on an income statement?

Question 11 options:

	A gain on the sale of machinery would be reported as a component of income from continuing operations.
	A gain on the sale of machinery would be reported as an extraordinary gain.
	A gain on the sale of machinery would be reported as a component of net sales.
	A gain on the sale of machinery would be reported as a component of income from discontinued operations.