A Company's Income Statement Reported Net Income of $80,000 During

Multiple Choice

A company's income statement reported net income of $80,000 during 2019.The income tax return excluded a revenue item of $6,000 (reported on the income statement) because under the tax laws the $6,000 would not be reported for tax purposes until 2020.Which of the following statements is incorrect assuming a 21% tax rate?

A) Income tax expense on the income statement exceeds the tax liability to the IRS.
B) The $6,000 of revenue creates a deferred tax liability.
C) A $1,260 deferred tax liability is reported as of December 31,2019.
D) Income tax expense on the income statement is $15,540.