Asked by alonna michaux on May 17, 2024
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A company's 2019 income tax return reported a $75,000 tax liability.During 2019,the deferred income tax liability account increased $9,000.Which of the following statements is correct?
A) Income tax expense on the 2019 income statement was $75,000.
B) Income tax expense on the 2019 income statement was $66,000.
C) Income tax expense on the 2019 income statement was $9,000.
D) Income tax expense on the 2019 income statement was $84,000.
Deferred Income Tax Liability
A tax obligation due in the future for income that has been recognized in the financial statements before it is taxable.
Tax Liability
Tax liability refers to the total amount of tax that an individual or entity is obligated to pay to a taxing authority, such as the government, based on income, property, and other applicable factors.
Income Tax Expense
The amount of money that a company owes to the government for income earned during a fiscal period.
- Grasp the influence and treatment of income taxes within financial statements.
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Learning Objectives
- Grasp the influence and treatment of income taxes within financial statements.
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