If a tax rate changes from 30 per cent to 25 per cent results in an adjustment to the Deferred Tax Liability account of $50,000,what is (a)the amount of the temporary differences; and (b)the type of temporary differences?

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The change in tax rate from 30% to 25% results in a $50,000 adjustment to the Deferred Tax Liability, indicating that the temporary differences are taxable and amount to $1,000,000 (since $1,000,000 * 5% = $50,000).

If a Tax Rate Changes from 30 Per Cent to 25