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

question 11

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

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Definitions:

Educational Group

Educational groups are designed to provide learning experiences and instruction to participants in a collective setting, focusing on a specific subject or skill.

Foster Parents

Individuals or couples who temporarily care for children whose biological parents are unable to do so, typically under arrangements with a social service agency.

Financial Incentive

Monetary rewards or penalties intended to influence behavior or outcomes, used in various contexts, including health promotion, employee performance, and consumer purchasing decisions.

Diagnostic Procedures

Methods used in medicine to identify the cause of an illness or disorder.