Assume that last year (2013), ABC Company recognized the following deferred tax items $25,000 deferred tax asset that reverses in the following year. $18,000 deferred tax liability that reverses equally over the following 2 years, For the current year (2014), taxable income is $80,000. The company has no other deferred taxes and the applicable tax rate is 40%. The entry to record income taxes for the current year (2014) would be: Select one: O a Debit income tax expense $39,000, debit deferred tax liability $18,000, credit income tax payable $32,000, credit deferred tax asset $25,000 O b. Debit income tax expense $16,000, debit deferred tax asset $25,000, credit income tax payable $32,000, credit deferred tax liability $9,000 c. Debit income tax expense $25,000, debit deferred tax asset $25.000, credit income tax payable $32,000, credit deferred tax liability $18,000 O d. Debit income tax expense $48,000, debit deferred tax liability $9,000, credit income tax payable $32,000, credit deferred tax asset $25,000 Clear my choice Permanent differences between financial and taxable income Select one: O a. Can give rise to deferred tax assets only but not deferred tax liabilities O b. Can give rise to deferred tax liabilities only but not deferred tax assets O c. Do not give rise to any deferred taxes (neither assets nor liabilities) O d. Can give rise to both deferred tax assets and liabilities, Clear my choice In 2013, XYZ Company had pretax financial income of $220,000, and taxable income of $204,000. The difference between financial and taxable income was expected to reverse in 2014. The enacted tax rate was 35% for 2013 and 40% for 2014. At the end of 2013, XYZ should recognize Select one: O a. A deferred tax asset of $5,600 O b. A deferred tax liability of $6,400 O c. A deferred tax asset of $6.400 O d. A deferred tax liability of $5,600 Clear my choice