Under the periodic inventory system, a physical inventory is taken to determine the cost of the inventory on hand and the cost of the merchandise sold

Windsor Company started 2016 with a deferred tax liability of $150. As of the end of the period, Windsor identifies future taxable amounts of $500. Windsor has a tax rate of 40%, and calculates that taxes payable will be $120. Windsor's tax expense journal entry will include a:

a. Debit to Tax expense for $200. b. Debit to Tax expense for $170. c. Debit to Tax expense for $50. d. Credit to Tax for $30.

Seasonal inventory is inventory that is built up to counter predictable variability in demand

Indicate whether the statement is true or false.