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

question 32

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

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Definitions:

Asante Akua'ba

Traditional African fertility dolls from the Akan people, particularly the Asante tribe in Ghana, characterized by their disc-shaped heads and abstract form.

Idealized Beauty

An artistic representation or concept of beauty that is perfected and exalted beyond ordinary human standards.

Senufo Mask Dancers

Part of the Senufo people's cultural traditions in West Africa, these dancers wear elaborate masks during ceremonies and rituals to communicate with ancestral spirits and deities.

Rite Of Passage

A rite of passage is a ceremony or event marking an important stage in someone's life, especially birth, puberty, marriage, and death.