How Much Tax Expense Would Be Recorded Under the Accrual

question 69

Multiple Choice

How much tax expense would be recorded under the accrual method for F2015? $$\begin{array} { | l | r | r | } \hline & \text { F2014 } & \text { F2015 } \\\hline \text { Deferred tax liability } & 27,500 & \\\hline \text { Revenue } & & 150,000 \\\hline \text { Taxable income } & & 105,000 \\\hline \text { Tax rate } & 25 \% & 35 \% \\\hline\end{array}$$

• A)11,000
• B)42,500
• C)52,500
• D)63,500

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