Betta Group Just Completed Its Second Year of Operations and Has

Betta Group just completed its second year of operations and has a deferred tax asset of $82,000 related to a net operating loss of $205,000 from the previous year. In the current year Betta generates $635,000 in revenues and incurs $341,000 in expenses. There are no permanent or temporary book-tax differences. Assuming the same tax rate as last year, what is the tax related journal entry for the current year?

A) $$\begin{array} { | c | r | r | } \hline \text { Income Tax Refund Receivable } & 82,000 & \\\hline \text { Deferred Tax Asset } & & 82,000 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Deferred Tax Asset } & 82,000 & \\\hline \text { Income Tax Benefit } & & 82,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Income Tax Expense } & 117,600 & \\\hline \text { Income Tax Payable } & & 35,600 \\\hline \text { Deferred Tax Asset } & & 82,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Income Tax Expense } & 254,000 & \\\hline \text { Income Tax Payable } & & 172,000 \\\hline \text { Deferred Tax Asset } & & 82,000 \\\hline\end{array}$$

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