On December 31, 2013, Jefferson Lake, Inc. reported a deferred tax liability of $1,875, based on the following schedule of future taxable amounts and enacted tax rates:
On February 7, 2014, Congress amended a previously passed tax law. The amendment changed the tax rate to 35% for 2014 and all future years.
Required:
Prepare the income tax journal entry for Jefferson Lake, Inc. necessary on February 7, 2014.

Question

On December 31, 2013, Jefferson Lake, Inc. reported a deferred tax liability of $1,875, based on the following schedule of future taxable amounts and enacted tax rates:  
On February 7, 2014, Congress amended a previously passed tax law. The amendment changed the tax rate to 35% for 2014 and all future years.
Required:
Prepare the income tax journal entry for Jefferson Lake, Inc. necessary on February 7, 2014.

Quizplus · Accepted Answer

The Answer of On December 31, 2013, Jefferson Lake, Inc. reported a deferred tax liability of $1,875, based on the following schedule of future taxable amounts and enacted tax rates:  
On February 7, 2014, Congress amended a previously passed tax law. The amendment changed the tax rate to 35% for 2014 and all future years.
Required:
Prepare the income tax journal entry for Jefferson Lake, Inc. necessary on February 7, 2014.