Answer:
$10,000 (Credit balance)
Explanation:
Given that,
Income before tax = $400,000
Income tax payments during the year = $150,000
Income tax rate = 40 percent
Therefore,
The balance in income tax payable at the end of the year:
= Tax liability - Income tax paid
= ($400,000 × 40%) - $150,000
= $160,000 - $150,000
= $10,000 (Credit balance)