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

question 57

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 50%.
Required:
Provide the journal entry to reflect the tax rate change.

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Definitions:

Folic Acid

A B-vitamin essential for the proper development of the human body, particularly critical in preventing neural tube defects in developing fetuses.

Folic Acid

A B-vitamin essential for cell growth and metabolism, important for the production of DNA and RNA, and crucial for preventing birth defects during pregnancy.

Calcium

A chemical element and essential nutrient that is crucial for many bodily functions, including bone health and nerve transmission.

Iron

A chemical element with symbol Fe and atomic number 26, essential for human health as it plays a critical role in oxygen transport and metabolic processes.