Arial Inc. recognized taxable income of $$130,000$ for the year ended December $31,2020.$ Arial calculated a deferred tax liability $$10,000$ on December $31,2020.$ The tax rate is $25\%.$ Assume zero beginning balances in deferred tax accounts.

If we prepared the income tax expense journal entry on December $31,2020.$

A$.$ Income Tax Expense would be $$42,500$

B$.$ Income Tax Expense would be $$45,000$

C$.$ Deferred Tax Liability would be $$32,500$

D$.$ Tax Payable would be $$15,000$

A

B

C