On December 31, 2009, Lake Jackson, Inc.reported a deferred tax liability of $1, 875, based on the following schedule of future taxable amounts and enacted tax rates:
On February 7, 2010, Congress amended a previously passed tax law.The amendment changed the tax rate to 35% for 2010 and all future years.
Required:
Prepare the income tax journal entry for Lake Jackson, Inc.necessary on February 7, 2010.

Question

On December 31, 2009, Lake Jackson, Inc.reported a deferred tax liability of $1, 875, based on the following schedule of future taxable amounts and enacted tax rates:
  On February 7, 2010, Congress amended a previously passed tax law.The amendment changed the tax rate to 35% for 2010 and all future years.
Required:
Prepare the income tax journal entry for Lake Jackson, Inc.necessary on February 7, 2010.

Quizplus · Accepted Answer

The Answer of On December 31, 2009, Lake Jackson, Inc.reported a deferred tax liability of $1, 875, based on the following schedule of future taxable amounts and enacted tax rates:
  On February 7, 2010, Congress amended a previously passed tax law.The amendment changed the tax rate to 35% for 2010 and all future years.
Required:
Prepare the income tax journal entry for Lake Jackson, Inc.necessary on February 7, 2010.