Choose the option to correctly complete the sentence.

The following table reports information from Stephen's Suitcases tax return and income statement for two years in a row. The tax rate is 30%.

TAX RETURN

Year; Taxable Income; Tax Due

1; $4000; $1200

2; $5000; $1500

INCOME STATEMENT

Year; Income before taxes; tax expense

1; $4500, $1350

2: $4500; $1350

In Year 1, Stephen's Suitcases will record a ____________ to the deferred tax accrual account, and in Year 2, Stephen's Suitcases will record a _____________ to the deferred tax accrual account.

• debit; credit
• debit; debit
• credit; debit
• credit; credit

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is credit debit Here... View the full answer