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:

Confrontational

Inclined toward or characterized by direct, often hostile opposition or challenge.

Consistent

Referring to something that is uniform, steady, or unchanged over time or across situations.

Viable Alternative

A feasible or practical option that serves as a substitute or replacement for something else.

Conventional Viewpoint

A perspective or opinion that is widely accepted or regarded as standard, traditional, or typical within a given society or community.