Piper,IncReported a Net Deferred Tax Asset Balance of $190,000 Resulting

question 97

Multiple Choice

Piper,Inc.reported a net deferred tax asset balance of $190,000 resulting from an estimated warranty expense accrual for book purposes.The total book-tax difference related to the bases of the estimated warranty liability is $475,000.The enacted statutory tax rate related to this balance changed from 40% to 35%,effective immediately.What journal entry will Piper need to make to adjust for this change in tax rates?

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Definitions:

Customer Service

Activities and support provided by a company to its customers, aiming to enhance satisfaction and address problems or questions regarding products or services.

Career Paradigm

The shifting perspective on careers, viewing them as paths that can change directions based on personal, technological, and market developments.

Rigid Thinking

A mindset characterized by inflexibility, difficulty in adapting to new situations, or refusal to change ideas despite evidence to the contrary.

Ambiguity

Refers to situations, statements, or conditions that are unclear, uncertain, or subject to more than one interpretation.