Question: In its 2016 income statement, Tow Inc. reported proceeds from an officer's life insurance policy of $90,000 and depreciation of $250,000. Tow was the owner

In its 2016 income statement, Tow Inc. reported proceeds from an

In its 2016 income statement, Tow Inc. reported proceeds from an officer's life insurance policy of $90,000 and depreciation of $250,000. Tow was the owner and beneficiary of the life insurance on its officer. Tow deducted depreciation of $370,000 in its 2016 income tax return when the tax rate was 25%. Data related to the reversal of the excess tax deduction for depreciation follow: Year 2017 2018 2019 2020 Reversal of excess tax deduction $10,000 20,000 40,000 50,000 Enacted tax rates 30% 30% 35% 35% There are no other temporary differences. Taxable income in 2016 is $68,000. Tow expects to report profits (rather than losses) for tax purposes for all future years. What is 2016 Income Tax Expense? Select one: a. $57,500 b. $47,000 c. $84,500 O d. $53,000 O e. $80,000

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