Western Corporation Has Taxable Income of $390,000 and Pretax Accounting

question 59

Multiple Choice

Western Corporation has taxable income of $390,000 and pretax accounting income of $363,000.The company's income tax rate is 30%.The journal entry to record the income tax includes a:

• A)debit to Income Tax Expense $117,000.
• B)credit to Deferred Tax Asset $8,100.
• C)debit to Deferred Tax Asset $8,100.
• D)credit to Income Tax Payable $108,900.

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Definitions:

Prospect

A potential customer or client who has been identified as fitting a target market or demographic but has not yet made a purchase.

Mental Steps

The cognitive processes or stages one goes through when solving a problem or making a decision.

Purchasing Decision

The process of evaluating and choosing among alternative products or services to fulfill a need or desire.

Selling Process

A series of steps taken by a salesperson to persuade potential buyers to purchase a product or service, from initial contact to closing the sale.