A Company Has a Deferred Tax Liability of $120,000 at the Beginning

question 65

Essay

A company has a deferred tax liability of $120,000 at the beginning of the fiscal year relating to a taxable temporary difference of $300,000.The current year tax rate is 20%.
Requirement:
Provide the journal entry to reflect the tax rate change.

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Definitions:

Deepest Stage

Often referring to the fourth stage of non-REM sleep, characterized by slow brain waves and the deepest level of sleep, crucial for restorative functions.

Right Brain Hemisphere

Refers to the hemisphere of the brain that is traditionally associated with creative tasks, intuition, arts, and holistic thinking.

Brain Locations

Specific areas within the brain that are associated with particular functions or activities.

Brain Injuries

Damage to the brain caused by external physical force, potentially leading to temporary or permanent impairment of cognitive, physical, and psychosocial functions.