In 2016, its first year of operations, Wilber Company reported pretax accounting income of $60,000. Included...

 

Transcribed Image Text:

In 2016, its first year of operations, Wilber Company reported pretax accounting income of $60,000. Included in the $60,000 was an expense for accrued, unpaid warranty costs of $8,000, which are not deductible until paid for income tax purposes. Wilber's income tax rate was 20%. The entry to record the Income tax expense would include a O credit to Income Taxes Payable for $12.000. O credit to Income Tax Expense for $12,000. credit to Deferred Tax Liability for $1.600. O debit to Deferred Tax Asset for $1,600. In 2016, its first year of operations, Wilber Company reported pretax accounting income of $60,000. Included in the $60,000 was an expense for accrued, unpaid warranty costs of $8,000, which are not deductible until paid for income tax purposes. Wilber's income tax rate was 20%. The entry to record the Income tax expense would include a O credit to Income Taxes Payable for $12.000. O credit to Income Tax Expense for $12,000. credit to Deferred Tax Liability for $1.600. O debit to Deferred Tax Asset for $1,600.

Answer rating: 100% (QA)

Correct answer The entry to record the income tax expense would include ... View the full answer