Jethro Ltd Has Accrued a Liability for Warranty Expense of $7000

Jethro Ltd has accrued a liability for warranty expense of $7000 in year 1 and a further $11 000 in year 2.During year 2,Jethro paid out $5000 for the cost of meeting warranty claims arising from sales made in year 1.Jethro's profit before tax in year 1 was $200 000 and in year 2 was $250 000.The company tax rate is 30%.At the end of year 2,Jethro should make the following entry:

A) $\begin{array}{l}\text { Dr Income Tax Expense } \quad \$ 78900\\\begin{array} { l r } \text { Cr Deferred Tax Asset } & \$ 3300 \\\text { Cr Retained Earnings } & \$ 600 \\\text { Cr Income Tax Payable } & \$ 75000\end{array}\end{array}$
B) B) Dr Income Tax Expense $\quad \$ 75000$
Dr Deferred Tax Asset $\quad \$ 1200$
Cr Income Tax Payable $\quad\$ 76200$
C) Dr Income Tax Expense $\quad \$ 75000$
$\mathrm { Cr }$ Deferred Tax Asset $\quad\$ 3300$
Cr income tax pavable $\quad\$ 71700$
D) $\begin{array}{l}\text { Dr Income Tax Expense } \quad \$ 75000\\\begin{array} { l r } \text { Cr Deferred Tax Asset } & \$ 1200 \\\text { Cr Income Tax Payable } & \$ 73800\end{array}\end{array}$