Elle,Kay and Jay Inc.has a deferred tax liability of $120,000 at the beginning and $105,000 at the end of the year.During the year,the company had a reversed taxable temporary difference of $100,000,and the tax rate was 35%.
Required:
Determine the balance of temporary differences at the beginning and at the end of the year and the tax rate effective in the previous year.

Question

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The Answer of Elle,Kay and Jay Inc.has a deferred tax liability of $120,000 at the beginning and $105,000 at the end of the year.During the year,the company had a reversed taxable temporary difference of $100,000,and the tax rate was 35%.
Required:
Determine the balance of temporary differences at the beginning and at the end of the year and the tax rate effective in the previous year.