Restrictions on beta ability to use minimum tax credit

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Beta Corporation incurs a $60,000 regular tax liability and a $20,000 AMT liability. Assuming no restrictions on Beta's ability to use the minimum tax credit, what journal entry would be necessary to record tax expense?

A) Federal income tax expense 60,000

Deferred tax asset 20,000

Taxes payable 80,000

B) Federal income tax expense 80,000

Taxes payable 80,000

C) Federal income tax expense 60,000

Taxes payable 60,000

D) Federal income tax expense 80,000

Deferred tax asset 20,000

Taxes payable 60,000

Reference no: EM13154049

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