A company has a deferred tax liability of $120,000 at the beginning of the fiscal year relating to a taxable temporary difference of $300,000. The current year tax rate is 20%.
Required:
Provide the journal entry to reflect the tax rate change.

Question

Quizplus · Accepted Answer

The Answer of A company has a deferred tax liability of $120,000 at the beginning of the fiscal year relating to a taxable temporary difference of $300,000. The current year tax rate is 20%.
Required:
Provide the journal entry to reflect the tax rate change.

A Company Has a Deferred Tax Liability of $120,000 at the Beginning