Sand engaged in operations at the start of 2018 and reported $550,000 in pre-tax book income for the year. Tax depreciation for Sand exceeded book depreciation by $50,000. The tax rate for 2018 was 30%, and Congress had enacted a tax rate of 20% for the years after 2018.The journal entry to record the taxes for Sand Company at December 31, 2018 would be:
A.
| DR | Income tax expense | 160,000 |
| CR | Deferred tax liability | 10,000 |
| CR | Income tax payable | 150,000 |
B.
| DR | Income tax expense | 170,000 |
| CR | Deferred tax liability | 10,000 |
| CR | Income tax payable | 160,000 |
C.
| DR | Income tax expense | 160,000 |
| CR | Cash | 160,000 |
D.
| DR | Income tax expense | 150,000 |
| CR | Cash | 150,000 |
Answer: A
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