Bakersfield Corp. pays income tax at an average rate of 30 percent. This year its revenue is $145,000 and its expenses are $101,500. The adjusting entry to record the income tax expense will:
A. increase stockholders' equity by $13,050.
B. decrease net income by $43,500.
C. decrease stockholders' equity by $13,050.
D. decrease liabilities by $13,050.
Answer: C
Business
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