In computing deferred income taxes, a new tax rate should be used if (a) it is probable that a future tax rate change will occur, and (b) the rate is reasonably estimable.

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According to accounting principles, when calculating deferred income taxes, if it is probable that a future tax rate change will occur and the rate is reasonably estimable, the new tax rate should be used to better reflect the future tax consequences of current transactions.

In Computing Deferred Income Taxes, a New Tax Rate Should