In 2010, Its First Year of Operations, Wichita Falls Company

In 2010, its first year of operations, Wichita Falls Company reported pretax accounting income of $60, 000.Included in the $60, 000 was an expense for accrued, unpaid warranty costs of $8, 000, which are not deductible until paid for income tax purposes.Wichita Falls' income tax rate was 20%.The entry to record the income tax expense would include a

A) credit to Income Tax Expense for $12, 000
B) credit to Income Taxes Payable for $12, 000
C) credit to Deferred Tax Liability for $1, 600
D) debit to Deferred Tax Asset for $1, 600