Multiple Choice
Based on its income for the month, Bates Company estimates that it will owe $23,000 of federal income taxes for the month of May. What is the effect of the adjustment on the financial statements?
A) Increase stockholders' equity
B) Increase income taxes expense
C) Increase retained earnings
D) Decrease income taxes payable
Correct Answer:
Verified
Correct Answer:
Verified
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