Onstar GPS Systems earned income before tax of $50,000. Taxable income was 40,000, and the income tax rate was 40%. Onstar recorded income tax with this journal entry:
|
Income Tax Expense |
20,000 |
|
|
Income Tax Payable |
16,000 |
|
|
Deferred Tax Liability |
4,000 |
|
|
Income Tax Expense |
20,000 |
|
|
Income Tax Payable |
20,000 |
|
|
Income Tax Payable |
16,000 |
|
|
Income Tax Expense |
16,000 |
|
|
Income Tax Payable |
20,000 |
|
|
Income Tax Expense |
16,000 |
|
|
Deferred Tax Liability |
4,000 |