What Is the Correct Journal Entry to Adjust for the Income

question 71

Short Answer

What is the correct journal entry to adjust for the income tax expense?
a. Petained Earnings
$\quad$$\quad$$\quad$ Income tax payable

b. Income tax expense
$\quad$$\quad$ Retained Earnings

c. Operating expense
$\quad$$\quad$ Income tax payable

d. Income tax expense
$\quad$$\quad$ Income tax payable

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Definitions:

Perpetuity

A type of annuity that pays a constant amount of money indefinitely, without a maturity date.

Semi-annual Scholarships

Scholarships awarded twice a year, often to support the educational expenses of students.

Compounded Annually

Pertains to the calculation of interest on both the initial principal and the accumulated interest from previous periods, applied once per year.

Perpetuity

A financial instrument that pays a constant stream of interest payments indefinitely.