Refer to Violet Corporation. What is the necessary journal entry for 2015?
A)
Income Tax Refund Receivable
195,000
Income Tax Payable
123,000
Deferred Tax Asset
72,000
B)
Income Tax Refund Receivable
123,000
Deferred Tax Asset
72,000
Income Tax Benefit
195,000
C)
Income Tax Refund Receivable
123,000
Deferred Tax Asset
123,000
D)
Deferred Tax Asset
195,000
Income Tax Benefit
195,000
Answer: B
Explanation: B) Refund (195,000 + 215,000) × 30%. Benefit 650,000 × 30%