Refer to Sonic Speaker Company. What is the journal entry to record the current year's tax provision and the liability for the uncertain tax provision?

A)
Income Tax Expense
216,600

Income Tax Payable

171,000
Deferred Tax Asset

45,600

B)
Income Tax Expense
216,600

Income Tax Payable

171,000
Income Tax Contingency

45,600

C)
Income Tax Expense
237,177

Income Tax Payable

171,000
Income Tax Contingency

66,177

D)
Income Tax Expense
323.000

Income Tax Payable

323,000

Answer: B
Explanation: B) Expense: (850,000 × 38%) - (280,000 × 38%). Contingency: (400,000 - 280,000) × 38% = 216,600