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.

---

Definitions:

Objective Sense

A viewpoint or perception based on observable and measurable facts, devoid of personal feelings, interpretations, or bias.

Coaching

A developmental process where an experienced individual, known as a coach, supports a learner or client in achieving a specific personal or professional goal through guidance and encouragement.

Constructive Feedback

Feedback that is offered in a supportive manner with the intent of helping someone improve or develop in a specific area.

Detailed Instructions

Specific and clear directions given to effectively complete a task or operate something.