Answer:
income tax expense 756,000 debit
deferred tax assets 184,000 debit
income tax payable 940,000 credit
Explanation:
As we are taxes as we collect but, for accounting reasons we reocngize gains under accrual method we have a portion of unearned reveneu which generates a deffered tax assets as next year this amount will not generate a tax payable:
unearned revenue 460,000
deferred tax assets: 460,000 x 40% = 184,000
income tax payable 940,000
- deferred tax assets<u> 184,000 </u>
income tax expense 756,000