Western Corporation has taxable income of $420,000 and pretax accounting income of $200,000. The company's income tax rate is 20%. The journal entry to record the income tax includes a:
A) debit to Income Tax Expense $84,000.
B) credit to Deferred Tax Asset $44,000.
C) debit to Deferred Tax Asset $44,000.
D) credit to Income Tax Payable $40,000.
Correct Answer:
Verified
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