The Following Information Was Taken from the Annual Report of Leno

Short Answer

The following information was taken from the annual report of Leno Inc.
$$\begin{array} { | l | l | c | } \hline & \mathbf { 2 0 1 7 } & \mathbf { 2 0 1 6 } \\\hline \text { BALANCE SHEET } & & \\\hline \text { Deferred incame tax liability } & \mathbf { \$ 5 8 , 3 0 0 } & \mathbf { \$ 5 9 , 4 0 0 } \\\hline & & \\\hline \text { INCOME STATEMENT } & & \\\hline \text { Incame befare taxes } & \$ 109,000 & \\\hline \text { Incame tax expense } & ( 40,400 ) & \\\hline \text { Net incame } & \mathbf { \$ 6 7 , 6 0 0 } & \\\hline \text { Effective incame tax rate } 35 \% & & \\\hline\end{array}$$
Based on this information, what journal entry should Leno make in 2010 to record its income taxes?
a.
$\begin{array}{lrr} \text { Income Tax Expense} &40,400\\ \text {Deferred Income Tax } &58,300\\ \text {Deferred Income Tax } &&59,400\\ \text { Income Tax Payable } &&39,300\\\end{array}$

b.
$\begin{array}{lrr} \text { Income Tax Expense} &40,400\\ \text {Deferred Income Tax } &19,000\\ \text { Income Tax Payable } &&59,400\\\end{array}$

c.
$\begin{array}{lrr} \text { Income Tax Expense} &40,000\\ \text {Deferred Income Tax } &1,100\\ \text { Income Tax Payable } &&41,500\\\end{array}$

d.
$\begin{array}{lrr} \text { Income Tax Expense} &40,400\\ \text {Deferred Income Tax } &17,900\\ \text { Income Tax Payable } &&58,300\\\end{array}$