A Company Has a Deferred Tax Liability of $60,000 at the Beginning

question 18

Essay

A company has a deferred tax liability of $60,000 at the beginning of the fiscal year relating to a taxable temporary difference of $300,000.The tax rate for the year increased from 20% to 25%.
Requirement:
Provide the journal entry to reflect the tax rate change.

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Definitions:

Constitution

The supreme law of the United States, outlining the national frame of government and the rights of the citizens.

Race

A social construct used to categorize humans into large and distinct groups based on physical characteristics, ancestry, culture, or history.

Rights

Legal, social, or ethical principles of freedom or entitlement; the fundamental norms regarding what is allowed of people or owed to people.

Fifteenth Amendment

An amendment to the U.S. Constitution granting African American men the right to vote, ratified in 1870 as part of the Reconstruction-era amendments.