A Company Has a Deferred Tax Liability of $20,000 at the Beginning

question 32

Essay

A company has a deferred tax liability of $20,000 at the beginning of the fiscal year relating to a taxable temporary difference of $80,000.The current year tax rate is 30%.
Requirement:
Provide the journal entry to reflect the tax rate change.

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Definitions:

Powerful Executives

Senior leaders within an organization who possess significant influence and authority over decision making and resources.

Providing Criticism

The act of delivering feedback, often focusing on areas of improvement or shortcomings, in a constructive manner to foster growth and development.

Learning Climate

A work environment that encourages and supports continuous learning, improvement, and development among its members.

Healthy Learning Climate

An environment within an organization that supports and encourages continuous learning, growth, and development of its members.