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Mearcat Corporation earned income before tax of $160,000. Taxable income was $140,000, and the income tax rate was 40%. The journal entry to record Mearcat's
Mearcat Corporation earned income before tax of $160,000. Taxable income was $140,000, and the income tax rate was 40%. The journal entry to record Mearcat's income tax expense and income tax liability was: . Income Tax Expense 64,000 Income Tax Payable 64,000 0 56,000 Income Tax Expense Income Tax Payable 56,000 0 64,000 Income Tax Expense Income Tax Payable Deferred Tax Liability 56,000 8,000 OD. 64,000 Income Tax Payable Income Tax Expense Deferred Tax Liability 56,000 8,000
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