RG Corporation has a temporary difference of $40,000 in 2014.Its tax rate in 2014 is 40% and the government enacted tax rate known at the end of 2014 for 2000 and subsequent years is 45%.What tax rate should be used to calculate the deferred income tax asset or liability?

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The Answer of RG Corporation has a temporary difference of $40,000 in 2014.Its tax rate in 2014 is 40% and the government enacted tax rate known at the end of 2014 for 2000 and subsequent years is 45%.What tax rate should be used to calculate the deferred income tax asset or liability?

RG Corporation Has a Temporary Difference of $40,000 in 2014