=+Apr. 15. Paid the first installment ofthe estimated income tax for the current fiscal year ending December 31, $90,000. No entry had been made to record the liability.

Dec. 31. Recorded the estimated income tax liability for the year just ended and the deferred income tax liability, based on the April 15 transaction and the following data:

Income tax rate 40%

Income before income tax $950,000 Taxable income according to tax return $800,000