For its first year of operations, Otter Corporation's computation of taxable income is as follows:

Hide

Pretax financial income

$$875,000$

Less: Tax exempt interest revenue on municipal bonds

$(112,000)$

Less: Excess of tax depreciation over financial depreciation $(200,000)$

Taxable income

$$563,000$

Otter is subject to a $35\%$ statutory tax rate. Which of the following represents how Otter should record its income tax provision?

Select one:

a$.$ Income Tax Expense $189,700$

Income Tax Payable

$189,700$

b$.$ Income Tax Expense $298,900$

Income Tax Payable

$298,900$

C$.$ Income Tax Expense $259,700$

$\backslash$table$[[$Income Tax Payable,$189,700],[$Deferred Tax Liability,$70,000]]$

d$.$ Income Tax Expense $267,050$

Income Tax Payable

$197,050$

Deferred Tax Liability

$70,000$

For its first year of operations, Otter Corporation's computation of taxable income is as follows:

Hide

Pretax financial income

$$875,000$

Less: Tax exempt interest revenue on municipal bonds

$(112,000)$

Less: Excess of tax depreciation over financial depreciation $(200,000)$

Taxable income

$$563,000$

Otter is subject to a $35\%$ statutory tax rate. Which of the following represents how Otter should record its income tax provision?

Select one:

a$.$ Income Tax Expense $189,700$

Income Tax Payable

$189,700$

b$.$ Income Tax Expense $298,900$

Income Tax Payable

$298,900$

C$.$ Income Tax Expense $259,700$

$\backslash$table$[[$Income Tax Payable,$189,700],[$Deferred Tax Liability,$70,000]]$

d$.$ Income Tax Expense $267,050$

Income Tax Payable

$197,050$

Deferred Tax Liability

$70,000$

For its first year of operations, Otter Corporation's computation of taxable income is as follows:

Hide

Pretax financial income

$$875,000$

Less: Tax exempt interest revenue on municipal bonds

$(112,000)$

Less: Excess of tax depreciation over financial depreciation $(200,000)$

Taxable income

$$563,000$

Otter is subject to a $35\%$ statutory tax rate. Which of the following represents how Otter should record its income tax provision?

Select one:

a$.$ Income Tax Expense $189,700$

Income Tax Payable

$189,700$

b$.$ Income Tax Expense $298,900$

Income Tax Payable

$298,900$

C$.$ Income Tax Expense $259,700$

$\backslash$table$[[$Income Tax Payable,$189,700],[$Deferred Tax Liability,$70,000]]$

d$.$ Income Tax Expense $267,050$

Income Tax Payable

$197,050$

Deferred Tax Liability

$70,000$

For its first year of operations, Otter Corporation's computation of taxable income is as follows:

Hide

Pretax financial income

$$875,000$

Less: Tax exempt interest revenue on municipal bonds

$(112,000)$

Less: Excess of tax depreciation over financial depreciation $(200,000)$

Taxable income

$$563,000$

Otter is subject to a $35\%$ statutory tax rate. Which of the following represents how Otter should record its income tax provision?

Select one:

a$.$ Income Tax Expense $189,700$

Income Tax Payable

$189,700$

b$.$ Income Tax Expense $298,900$

Income Tax Payable

$298,900$

C$.$ Income Tax Expense $259,700$

$\backslash$table$[[$Income Tax Payable,$189,700],[$Deferred Tax Liability,$70,000]]$

d$.$ Income Tax Expense $267,050$

Income Tax Payable

$197,050$

Deferred Tax Liability

$70,000$

For its first year of operations, Otter Corporation's computation of taxable income is as follows:

Hide

Pretax financial income

$$875,000$

Less: Tax exempt interest revenue on municipal bonds

$(112,000)$

Less: Excess of tax depreciation over financial depreciation $(200,000)$

Taxable income

$$563,000$

Otter is subject to a $35\%$ statutory tax rate. Which of the following represents how Otter should record its income tax provision?

Select one:

a$.$ Income Tax Expense $189,700$

Income Tax Payable

$189,700$

b$.$ Income Tax Expense $298,900$

Income Tax Payable

$298,900$

C$.$ Income Tax Expense $259,700$

$\backslash$table$[[$Income Tax Payable,$189,700],[$Deferred Tax Liability,$70,000]]$

d$.$ Income Tax Expense $267,050$

Income Tax Payable

$197,050$

Deferred Tax Liability

$70,000$

For its first year of operations, Otter Corporation's computation of taxable income is as follows:

Hide

Pretax financial income

$$875,000$

Less: Tax exempt interest revenue on municipal bonds

$(112,000)$

Less: Excess of tax depreciation over financial depreciation $(200,000)$

Taxable income

$$563,000$

Otter is subject to a $35\%$ statutory tax rate. Which of the following represents how