At the end of 2021, Schrutte Inc. in its first year of operations, had pretax financial income of $650,000. The company had extra depreciation taken for tax purposes in the amount of $975,000. Estimated expenses that were deducted for financial income but not yet paid amounted to $425,000. It is estimated that the expenses will be paid in 2022. The tax rate for all years is 25%

In the journal entry at the end of the year that records income tax expense, deferred taxes and income taxes payable, what is the entry to the Income Tax Payable account?

Question 7 options:

a)	credit Income Tax Payable account by $512,500.

b)	credit Income Tax Payable account by $300,000.

c)	credit Income Tax Payable account by $162,500

d)	credit to Income Tax Payable account by $25,000.