Working on a homework assignment and a question states that a $$1500$ expense was not previously considered when calculating the businesse's income tax expense. I am supposed to make an adjusting entry for this situation. I am uncertain as to whether or not I increase income tax expense and income tax payable or decrease income tax expense and income tax payable. I am leaning more towards it would increase their taxable income, therefore increasing income tax expense and income tax payable. If this is the case, could you explain in more detail why this is the case?

Answer rating: 100% (QA)

You are correct in your assessment When a previously unrecorded expense of 1500 is identified and ne... View the full answer