Bakersfield Corp. pays income tax at an average rate of 30 percent. This year its revenue is $145,000 and its expenses are $101,500. The adjusting entry to record the income tax expense will:

Multiple Choice

• decrease net income by $43,500.

• increase stockholders' equity by $13,050.

• decrease stockholders' equity by $13,050.

• decrease liabilities by $13,050.