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Kahan Enterprises had gross profit on an installment sale of $600,000 at December 31,20x1, the...

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Accounting

Kahan Enterprises had gross profit on an installment sale of $600,000 at December 31,20x1, the end of its first period of operations. It will collect two-thirds of the amount in 202 and the last third in 203. Kahan reported pre-tax financial income of $2,400,000 on 20X1. Its tax rate is 20%. The journal entry to accrue Kahan's income tax expense for 201 will include
a credit to Income Tax Payable for $600,000.
a credit to Deferred Tax Liability for $120,000.
a debit to Deferred Tax Liability for $80,000.
a debit to Income Tax Expense for $360,000.
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