At the end of 2007, Rowet Company reported a deferred tax liability of $6,120 based on an

Question:

At the end of 2007, Rowet Company reported a deferred tax liability of $6,120 based on an income tax rate of 30%. On June 1, 2008 Congress changed the income tax rate to 35%.

Required

1. Calculate the amount of the adjustment to Rowet Company’s 2007 year-end deferred tax liability.

2. Prepare the journal entry to correct Rowet Company’s deferred tax liability.

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Intermediate Accounting

ISBN: 978-0324300987

10th Edition

Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones

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Question Posted: Mar 10, 2012 06:44 AM

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At the end of 2007, Rowet Company reported a deferred tax liability of $6,120 based on an

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1 6120 030 20400 future taxable amount at end of 2007 204...View the full answer

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