Tom-Kat Inc B) C) D)

Tom-Kat Inc.'s income before taxes is $360,000 and its tax rate is 30%. Tom-Kat included $60,000 of interest from municipal bonds in the $360,000. There are no other book-tax differences. What is the journal entry to record income tax expense?

A) $$\begin{array} { | c | r | r | } \hline \text { Income Tax Expense } & 90,000 & \\\hline \text { Income Tax Payable } & & 90,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Income Tax Expense } & 108,000 & \\\hline \text { Income Tax Payable } & & 108,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Income Tax Expense } & 126,000 & \\\hline \text { Income Tax Payable } & & 126,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Income Tax Expense } & 18,000 & \\\hline \text { Income Tax Payable } & & 18,000 \\\hline\end{array}$$