Kay Company has a deferred tax liability of $55,000 at the beginning of the year. At the
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Kay Company has a deferred tax liability of $55,000 at the beginning of the year. At the end of the year, the deferred tax liability was $90,000. During the year, the company had taxable temporary differences of $80,000. For this year, the tax rate is 30%.
Required:
Determine the balance of temporary differences at the beginning and at the end of the year and the tax rate effective in the prior year.
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