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:

Adler

Refers to Alfred Adler, an Austrian psychiatrist known for his development of individual psychology, emphasizing the importance of feelings of inferiority and societal contributions.

Psychological Disorder

A pattern of behavioral, cognitive, or physical symptoms that cause significant distress, impair daily functioning, or both.

Sociocultural Approach

A perspective in psychology that examines the ways in which social and cultural environments influence behavior.

Horney

Refers to Karen Horney, a psychoanalytic psychologist known for her theories on neurosis, personality development, and the concept of basic anxiety.