27. Duchess Company started the period with a deferred tax asset of $400. As of the end of the period, Duchess identifies future deductible amounts of $1,120. Duchess has a tax rate of 25%, and calculates that taxes payable will be $200. As a result of this transaction, Duchesss tax expense journal entry would include a:

a. Debit to deferred tax asset of $120

b. Credit to deferred tax asset of $120

c. Debit to deferred tax asset of $280

d. Credit to deferred tax asset of $280

29. For its first year of operations, Thing Corporation's reconciliation of pretax accounting income to taxable income is as follows:

Pretax accounting income	$400,000
Permanent difference	(20,000)
	380,000
temporary difference-unearned revenue	80,000
taxable income	460,000

Thing's tax rate is 25%. Assume that no estimated taxes have been paid.

What should Thing report as its income tax expense for its first year of operations?

a. 95,000

b. 100,000

c. 115,000

d. 135,000