Lynch Company began operations in 2016. The company reported $24,000 of depreciation expense on its income statement in 2016 and $26,000 in 2017. On its tax returns, Lynch deducted $32,000 for depreciation in 2016 and $37,000 in 2017. The 2017 tax return shows a tax obligation (liability) of $19,200 based on a 40% tax rate.

Calculate the income tax expense for 2017.

Prepare a journal entry to record income tax expense and post the entry to the appropriate T-accounts for 2017

d. Prepare a journal entry to record income tax expense and post the entry to the appropriate T-accounts for 2017.

	Description	Debit	Credit
	Income taxes expense Income tax payable Deferred tax liability	Answer Answer Answer	Answer Answer Answer