Question
The following information was available on 30 June 2021: 30 June 2021 total taxable temporary differences $67,000 and total deductible temporary differences $82,000 1 July
The following information was available on 30 June 2021:
- 30 June 2021 total taxable temporary differences $67,000 and total deductible temporary differences $82,000
- 1 July 2020 deferred tax asset $17,200
- 1 July 2020 deferred tax liability $31,600
- Income tax rate 30%
The journal entry to adjust the deferred tax accounts for 30 June 2021 is:
Select one:
a.
DR Income Tax Expense (deferred) $4,100, DR Deferred Tax Asset $7,400, CR Deferred Tax Liability $11,500
b.
DR Deferred Tax Asset $7,400, DR Deferred Tax Liability $11,500, CR Income Tax Expense (deferred) $18,900
c.
DR Deferred Tax Asset $64,800, CR Deferred Tax Liability $35,400, CR Income Tax Expense (deferred) $29,400
d.
DR Deferred Tax Liability $7,000, DR Deferred Tax Asset $2,900, CR Income Tax Expense (deferred) $9,900
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