In 2016, Cunningham Company determined that it did not accrue $15,000 of interest expense in 2015, which caused a material overstatement of income. Assuming a 35% tax rate, which of the following presents the journal entries that would correct the error?
A) ?Retained Earnings 15,000Interest Payable 15,000?Income Tax Receivable (or Payable) 15,000Retained Earnings 15,000??
B) ?Retained Earnings 15,000Interest Payable 15,000?Income Tax Receivable (or Payable) 5,250Retained Earnings 5,250
C) ?Retained Earnings 9,750Interest Payable 9,750?Income Tax Receivable (or Payable) 5,250Retained Earnings 5,250??
D) ?Retained Earnings 5,250Interest Payable 5,250?Income Tax Receivable (or Payable) 9,750Retained Earnings 9,750
B
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Fill in the blank(s) with correct word