Charmed Inc $$\begin{array} { | c | r | r | } \hline \text { Income Tax Expense } & 7,500 & \\\hline \text { Income Tax Payable } & & 7,500 \\\hline\end{array}$$

question 111

Multiple Choice

Charmed Inc.'s income before taxes is $720,000 and its tax rate is 25%. Charmed included $30,000 in non-deductible life insurance premiums in the $720,000. There are no other book-tax differences. What is the journal entry to record income tax expense?

• A) \[\begin{array} { | c | r | r | }
• \hline \text { Income Tax Expense } & 7,500 & \\
• \hline \text { Income Tax Payable } & & 7,500 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | c | r | r | }
• \hline \text { Income Tax Expense } & 172,500 & \\
• \hline \text { Income Tax Payable } & & 172,500 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | c | r | r | }
• \hline \text { Income Tax Expense } & 180,000 & \\
• \hline \text { Income Tax Payable } & & 180,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | c | r | r | }
• \hline \text { Income Tax Expense } & 187,500 & \\
• \hline \text { Income Tax Payable } & & 187,500 \\
• \hline
• \end{array}\]