单选题 The following tax data is associated with a firm: Income tax expense of $ 25000. Income taxes payable of $ 30000. Pretax income of $ 80000. 40% tax bracket. What is this firm' s alternative effective tax rate?

A、

A. 31.25%.
B、

B. 37.50%.
C、

C. 40.00%.

【正确答案】 B

【答案解析】Pretax income, $ 80000 Taxes payable, 30000 Tax expense, 25000 Alternative ETR( taxes payable/pretax income) 30000/80000 = 0.375 or 37.5%