Pruett Corporation began operations in 2015 and appropriately recorded a deferred tax liability at the end of 2015 and 2016 based on the following depreciation temporary differences between pretax financial income and taxable income: The income tax rate for 2015 and 2016 was 30%. In February 2017, due to budget constraints, Congress enacted an income tax rate of 35%. What is the journal entry required to adjust the Deferred Tax Liability account in February 2017?

Question

Pruett Corporation began operations in 2015 and appropriately recorded a deferred tax liability at the end of 2015 and 2016 based on the following depreciation temporary differences between pretax financial income and taxable income:  The income tax rate for 2015 and 2016 was 30%. In February 2017, due to budget constraints, Congress enacted an income tax rate of 35%. What is the journal entry required to adjust the Deferred Tax Liability account in February 2017?

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The Answer of Pruett Corporation began operations in 2015 and appropriately recorded a deferred tax liability at the end of 2015 and 2016 based on the following depreciation temporary differences between pretax financial income and taxable income:  The income tax rate for 2015 and 2016 was 30%. In February 2017, due to budget constraints, Congress enacted an income tax rate of 35%. What is the journal entry required to adjust the Deferred Tax Liability account in February 2017?

Pruett Corporation Began Operations in 2015 and Appropriately Recorded a Deferred