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.

---

Definitions:

Alternative Solutions

refer to different strategies or methods to solve a problem or achieve a goal, aside from the initial or obvious choice.

Best Solution

The most effective or suitable way of solving a problem or dealing with a situation.

Crowdsourcing

The practice of obtaining information or input into a task or project by enlisting the services of a large number of people, either paid or unpaid, typically via the internet.

Contracting

The act of establishing formal agreements between two or more parties, typically involving the exchange of goods, services, or commitments.