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Based on its income for the month, a company estimates that it will owe $23,000 of federal income taxes for the month of May.

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Answer #1

ANSWER:-

GIVEN THAT:

When we are estimating and accounting provision for income tax,entry will be:

Debit income tax expenses

Credit income tax payable

it will result to INCREASE IN INCOME TAX EXPENSE and increase in income tax payable.

Therefore the correct answer is option no-2

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