单选题

The following information is available about a company:

(all figures in 5 thousands)	2011	2010
Deferred tax assets	200	160
Deferred tax liabilities	（450）	（360）
Net deferred tax liabilities	（250）	（200）
Earnings before taxes	4,000	3,800
Income taxes at the statutory rate	1,200	1,140
Current income tax expense	1,000	900

The company’s 2011 income tax expense (in thousands) is closest to:

A、 $1,000
B、 $1,050
C、 $1,250

【正确答案】 B

【答案解析】

B is correct. Income tax expense reported on the income statement = Income tax payable + Net changes in the deferred tax assets and deferred tax liabilities. The change in the net deferred tax liability is a $50 increase (indicating that the income tax expense is $50 in excess of the income tax payable [or current income tax expense] and representing an increase in the expense). Therefore, the income tax expense = 1,000 + 50 = 1,050.