In Its First Year of Operations Acme Corp

question 102

Multiple Choice

In its first year of operations Acme Corp. had income before tax of $400,000. Acme made income tax payments totaling $150,000 during the year and has an income tax rate of 40%. What would be the balance in income tax payable at the end of the year?

• A)$160,000 credit.
• B)$150,000 credit.
• C)$ 10,000 credit.
• D)$ 10,000 debit.Income tax expense = $400,000 40% = $160,000

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