Beare Company claims a $2,000,000 R&D tax credit. These credits are often challenged by the IRS. Based on analysis of probability distributions of possible outcomes, Beare attorneys determine they can recognize $1,800,000 as a current tax benefit. This means that as a result of claiming this tax credit, Beare Company will

A) ?decrease income tax expense $1,800,000 and decrease income tax payable by $1,800,000,
B) ?decrease income tax expense $1,800,000, decrease income tax payable by $2,000,000, and increase noncurrent tax liability $200,000.
C) ?decrease income tax expense $2,000,000, decrease income tax payable by $1,8000,000, and decrease noncurrent tax liability $200,000.
D) ?decrease income tax expense $2,000,000, decrease income tax payable by $1,8000,000, and increase noncurrent tax liability $200,000.


B

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