Omar Ltd made an accounting profit before tax of $50,000 for the year ended 30 June 2021.

Included in the accounting profit were the following items of expense: entertainment expense $8,000 and bad debts expense $12,000.

Omar Ltd wrote off $16,000 in bad debts for the year ended 30 June 2021. The company income tax rate is 30%.

Omar Ltd should record:

Select one:

a.

$18,600 debit for income tax expense.

b.

$16,200 credit for current tax liability.

c.

$13,800 credit for current tax liability.

d.

$15,000 debit for income tax expense.

Clear my choice