GMS Corp Reported $680,000 in Income Tax Expense for the Year

question 6

Multiple Choice

GMS Corp. reported $680,000 in income tax expense for the year under the accrual method. Its balance sheet reported an overall increase in deferred income tax liability of $40,000 and a decrease in income tax payable of $50,000. How much would GMS report as income tax expense had it used the taxes payable method?

• A)$680,000
• B)$630,000
• C)$720,000
• D)$640,000

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