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Greene Co Has Book Income of $425,000, and a Tax Rate

Question 2

Multiple Choice

Greene Co. has book income of $425,000, and a tax rate of 30%. Assuming there are no book-tax differences, what will the journal entry be to record the income tax expense?


A)  Income Tax Expense 127,500 Income Tax Payable 127,500\begin{array} { | c | r | r | } \hline \text { Income Tax Expense } & 127,500 & \\\hline \text { Income Tax Payable } & & 127,500 \\\hline\end{array}
B)  Income Tax Expense 255,000 Income Tax Payable 255,000\begin{array} { | c | r | r | } \hline \text { Income Tax Expense } & 255,000 & \\\hline \text { Income Tax Payable } & & 255,000 \\\hline\end{array}
C)  Income Tax Payable 127,500 Income Tax Expense 127,500\begin{array} { | c | r | r | } \hline \text { Income Tax Payable } & 127,500 & \\\hline \text { Income Tax Expense } & & 127,500 \\\hline\end{array}
D)  Income Tax Payable 255,000 Income Tax Expense 255,000\begin{array} { | c | r | r | } \hline \text { Income Tax Payable } & 255,000 & \\\hline \text { Income Tax Expense } & & 255,000 \\\hline\end{array}

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