In its first year of operations Acme Corp. had income before tax of $400,000. Acme made income tax payments totaling $150,000 during the year and has an income tax rate of 40%. What is the balance in income tax payable at the end of the year?
A) $160,000 credit.
B) $150,000 credit.
C) $10,000 credit.
D) $10,000 debit.

Question

Quizplus · Accepted Answer

Income tax expense = $400,000 × 40% = $160,000 11ea937b_3668_ce29_a419_2130cb243092_TB2599_00

In Its First Year of Operations Acme Corp