At December 31, 2018, Higley Corporation has one temporary difference which will reverse and cause taxable amounts

Question:

At December 31, 2018, Higley has one temporary difference which will reverse and cause taxable amounts in 2015. In 2014, a new tax act set taxes equal to 45% for 2018, 40% for 2019, and 34% for 2020 and years thereafter.
Instructions
Explain what circumstances would call for Higley to compute its deferred tax liability at the end of 2018 by multiplying the cumulative temporary difference by:
a. 45%.
b. 40%.
c. 34%.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...