A company's 2010 income tax return reported a $75,000 tax liability.During 2010,the deferred income tax liability account increased $9,000.Which of the following statements is correct?

Question

Quizplus · Accepted Answer

The income tax expense ($84,000) on the 2010 income statement equals the IRS tax liability ($75,000) plus the increase in the deferred income tax liability ($9,000).

A Company's 2010 Income Tax Return Reported a $75,000 Tax