Question: BCD Co. increased its tax payable by $10 million. BCD reduced its deferred tax liabilities by $2 million and deferred tax assets by $1 million.

BCD Co. increased its tax payable by $10 million. BCD reduced its deferred tax liabilities by $2 million and deferred tax assets by $1 million. The company is subject to a tax rate of 25%. The income tax expense was:

A) $9 million.

B) $10 million.

C) $11 million.

D) $13 million.

Can someone please explain how to solve this, thank you

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