In 2016, Its First Year of Operations, Wilber Company Reported

question 5

Multiple Choice

In 2016, its first year of operations, Wilber Company reported pretax accounting income of $60,000. Included in the $60,000 was an expense for accrued, unpaid warranty costs of $8,000, which are not deductible until paid for income tax purposes. Wilber's income tax rate was 20%. The entry to record the income tax expense would include a

• A) credit to Income Tax Expense for $12,000.
• B) credit to Income Taxes Payable for $12,000.
• C) credit to Deferred Tax Liability for $1,600.
• D) debit to Deferred Tax Asset for $1,600.

---

Definitions:

Compensating

Providing remuneration or benefits to employees in return for their work and contribution to the organization.

Global Arena

The international landscape for business or politics where interactions and competitions occur on a global scale.

International HRM

Concerns with managing human resources in multinational corporations, focusing on policies and practices that address the challenges of operating in multiple countries.

Multidomestic Strategy

A business approach that involves tailoring products and strategies to fit the specific needs and preferences of each country in which it operates.