The following trial balance of Scott Corp. at December 31, 2008 has been properly adjusted except for the income tax expense adjustment.
Other financial data for the year ended December 31, 2008:
• Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2010.
• The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which $20,000 is classified as a current liability.
• During the year, estimated tax payments of $525,000 were charged to income tax expense.
The current and future tax rate on all types of income is 30%.
-The current liabilities total is
A) $1,850,000.
B) $1,915,000.
C) $2,375,000.
D) $2,440,000.

Question

The following trial balance of Scott Corp. at December 31, 2008 has been properly adjusted except for the income tax expense adjustment.
  Other financial data for the year ended December 31, 2008:
• Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2010.
• The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which $20,000 is classified as a current liability.
• During the year, estimated tax payments of $525,000 were charged to income tax expense.
The current and future tax rate on all types of income is 30%.
-The current liabilities total is
A) $1,850,000. 
B) $1,915,000. 
C) $2,375,000. 
D) $2,440,000.

Quizplus · Accepted Answer

$1,701,000 + ($654,000 - $525,000) + $20,000 = $1,850,000

The Following Trial Balance of Scott Corp