Phyllis, inc., earns book net income before tax of $600,000. phyllis puts into service a depreciable asset this year, and first year tax depreciation exceeds book depreciation by $120,000. phyllis has recorded no other temporary or permanent book-tax differences. assuming that the u. s. tax rate is 21%, what is phyllis's total income tax expense reported on its gaap financial statements?
a. $252,000b. $210,000c. $168,000d. $42,000

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)