Income Tax Expense Reported on the Income Statement Is $45,000

Multiple Choice

Income tax expense reported on the income statement is $45,000 for 20X0, and the tax return for 20X0 (the first year) shows an income tax liability of $42,000 because of a deduction that cannot be taken until 20X1. The future income tax amount on the statement of financial position at the end of 20X0 will be which of the following?

A) debit of $3,000
B) credit of $3,000
C) credit of $42,000
D) credit of $45,000