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)
$\begin{array}{ll}\text { Dr Income Tax Expense } & \$ 78900 \\\text { Cr Deferred Tax Asset } && \$ 3300 \\\text { Cr Retained Earnings } && \$ 600 \\\text { Cr Income Tax Payable } && \$ 75000\end{array}$

B)
$\begin{array}{ll}\text { Dr Income Tax Expense } & \$ 75000 \\\text { Dr Deferred Tax Asset } & \$ 1200\\\text { Cr Income Tax Pavable }&&\$76200\end{array}$

C)
$\begin{array} { c c c } \text { Dr Income Tax Expense } & \$ 75000 & \\\text { Cr Deferred Tax Asset } & & \$ 3300 \\\text { Cr Income Tax Payable } && \$ 71700\end{array}$

D)
$\begin{array} { c c c } \text { Dr Income Tax Expense } & \$ 75000 & \\\text { Cr Deferred Tax Asset } & & \$ 1200 \\\text { Cr Income Tax Payable } && \$ 73800\end{array}$