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European Rail Corporation, Whose Income Tax Rate Is 40%, Has

Question 36

Multiple Choice

European Rail Corporation, whose income tax rate is 40%, has taxable income of $815,000 and pretax accounting income of $846,000. Under IFRS the entry to record the income tax includes a:


A) credit to Deferred Tax Liability for $12,400
B) debit to Deferred Tax Asset for $12,400
C) debit to Income Tax Expense for $326,000
D) credit to Income Tax Payable for $338,400

Correct Answer:

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