Giada Foods reported $940 million in income before income taxes for 2021, its first year of operations. Tax depreciation exceeded depreciation for financial reporting purposes by $100 million. The company also had non-tax-deductible expenses of $80 million relating to permanent differences. The income tax rate for 2021 was 25%, but the enacted rate for years after 2021 is 30%.
The balance in the deferred tax liability in the December 31, 2021, balance sheet is (5pts):
A. $16 million
B. $25 million
C. $30 million
D. $54 million
What would be the full journal entry to record the above amount (3 pts)?
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