Congress reduces the corporate tax rate from 35 percent to 25 percent effective in 2015. The tax rate change will affect only deferred tax assets and liabilities that arise in 2015 and thereafter.

Question

Quizplus · Accepted Answer

The tax rate change affects all deferred tax assets and liabilities, including those existing before 2015, as they must be remeasured using the new tax rate.

Congress Reduces the Corporate Tax Rate from 35 Percent to 25