A company has a deferred tax liability of $60,000 at the beginning of the fiscal year relating to a taxable temporary difference of $300,000.The tax rate for the year increased from 20% to 25%.
Requirement:
Provide the journal entry to reflect the tax rate change.

Question

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The Answer of A company has a deferred tax liability of $60,000 at the beginning of the fiscal year relating to a taxable temporary difference of $300,000.The tax rate for the year increased from 20% to 25%.
Requirement:
Provide the journal entry to reflect the tax rate change.

A Company Has a Deferred Tax Liability of $60,000 at the Beginning