European Rail Corporation, Whose Income Tax Rate Is 40%, Has

Multiple Choice

European Rail Corporation, whose income tax rate is 40%, has taxable income of $815,000 and pretax accounting income of $846,000. Under IFRS the entry to record the income tax includes a:

A) credit to Deferred Tax Liability for $12,400
B) debit to Deferred Tax Asset for $12,400
C) debit to Income Tax Expense for $326,000
D) credit to Income Tax Payable for $338,400