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Home Q & A Board Other Fields Homework Help Business Accounting
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RaviPatel001 RaviPatel001
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5 years ago
The IRS is investigating Miller Productions tax returns for 2015 and 2016. Based on the IRS audit procedures, the company accrued a $46,000 loss additional assessment in 2016 for the 2015 tax year. At the end of 2016, Miller was able to settle with IRS for $68,000. What entry should Edwards make when it pays the deficiency in December, 2016?

A)
AccountDebitCredit
Income Taxes Payable46,000
Retained Earnings22,000
     Cash68,000

B)
AccountDebitCredit
Income Taxes Payable46,000
Income Tax Expense22,000
     Cash68,000

C)
AccountDebitCredit
Income Taxes Payable46,000
     Retained Earnings22,000
     Cash24,000

D)
AccountDebitCredit
Income Taxes Payable68,000
     Cash68,000
Textbook 
Intermediate Accounting

Intermediate Accounting


Edition: 1st
Authors:
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dboticusdboticus
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5 years ago
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RaviPatel001 Author
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#2
5 years ago
I wanna give this person a hug.
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