Challenger 605 Corporation, Whose Income Tax Rate Is 35%, Has

Multiple Choice

Challenger 605 Corporation, whose income tax rate is 35%, has pretax accounting income of $4,850,000 and taxable income of $4,075,000. Under ASPE, the entry to record the income tax includes a:

A) debit to Future Tax Asset for $271,250
B) debit to Future Tax Asset for $775,000
C) credit to Future Tax Liability for $271,250
D) credit to Future Tax Liability for $775,000