Shortly before the end of 2021, Charlie Brown Company makes an installment sale that generates...
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Accounting
Shortly before the end of 2021, Charlie Brown Company makes an installment sale that generates $1000 of before-tax income. Charlie Brown recognizes income for accounting purposes when the sale is made, but will recognize income for tax purposes when cash is subsequently collected in 2022. Charlie Brown has a tax rate of 25%. No other temporary differences exist. As a result of this transaction only, Charlie Browns tax expense journal entry in 2021 would include a:
Group of answer choices
Credit to deferred tax liability for $250
Debit to deferred tax liability for $250
Credit to deferred tax liability for $1000
None of the options listed.
Debit to deferred tax liability for $1000
Pluto Inc. had a decrease in deferred tax liability of $37 million, a decrease in deferred tax assets of $27 million, and an increase in tax payable of $117 million. The company is subject to a tax rate of 25%. The total income tax expense for the year was:
Group of answer choices
$134 million.
$106 million.
$107 million.
$102 million.
None of the options listed.
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