22. At the end of its first year of operation, Hopkins Co. prepares a reconciliation between pretax income and taxable income as follows: Pretax income Extra depreciation for taxes Estimated litigation expense Taxable income $ 3,000 (6,000) 4,000 $1,000 The $ 6,000 extra depreciation for taxes will reverse evenly over the next three years. The s 4,000 estimated litigation expense becomes tax deductible when the expense is paid. Suppose the income tax rate is 30% for all years, which of the following is the correct journal entry to record tax expense? .....$ 900 A. Tax expense....... Deferred tax liability. Income tax payable...... 600 300 ... ... B. Tax expense......................... Deferred tax assets.... Deferred tax liability....... Income tax payable....... .5 900 1,200 ..........$ 1,800 ..............$ 300 C. Deferred tax assets............. Tax benefit. Income tax payable.. $ 600 ..........$ ......$ 300 300 D. Deferred tax assets...... Tax benefit. Deferred tax liability.......... Income tax payable.......... $ 1,800 *** $ 300 1,200 . 300