On December 31, 2019, the Fly Company had no temporary differences that created deferred income taxes. On January 2, 2020, a new machine was purchased for $30,000. Straight-line depreciation over a four-year life (no residual value) was used for financial accounting. Depreciation expense for tax purposes was $12,000 in 2020, $8,000 in 2021, $6,000 in 2022, and $4,000 in 2023. In each year, the income tax rate was 30% and Fly Company had no other items that created differences between pretax financial income and taxable income.

Fly reported the following pretax financial income for 2020 through 2023: 2020 $40,000 2021 50,000 2022 30,000 2023 60,000

The entry to record income taxes on December 31, 2021, would include a: a. credit to Deferred Tax Liability for $150 b. credit to Income Taxes Payable for $15,000 c. debit to Income Tax Expense for $14,850 d. debit to Deferred Tax Liability for $150