Question
help, please!!!! Kraft Company made the following journal entry in late 2025 for rent received on property it leases to Danford Corporation: Cash 150,000 Unearned
help, please!!!!
Kraft Company made the following journal entry in late 2025 for rent received on property it leases to Danford Corporation: Cash 150,000 Unearned Rent Revenue 150,000 The payment represents rent for the years 2026 and 2027, the period covered by the lease. Kraft is a cash basic taxpayer. Kraft has an income tax payable of $230,000 at the end of 2025, and its tax rate is 25%. Assuming that income taxes payable at the end of 2026 is $255,000, what amount of income tax expense would Kraft record for 2026?
A) $273,750
B) $236,250
C) $292,500
D) $217,500
Thank you!
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