23 On January 1, 2021, a company had an existing deferred tax liability attributable to a...
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23 On January 1, 2021, a company had an existing deferred tax liability attributable to a temporary difference of $20,000. The tax rate at this time was 30%. During 2021, a new law was passed that changed the tax rate to 40% beginning in 2022. The change in tax rate was not known in advance. As of December 31, 2021, the temporary difference was $28,000. The journal entry for taxes in 2021 will include a: ✓(Click to select) debit to Deferred Tax Liability for $5,20 debit to Deferred Tax Liability for $2,400 credit to Deferred Tax Liability for $2,400 credit to Deferred Tax Liability for $5,200 23 On January 1, 2021, a company had an existing deferred tax liability attributable to a temporary difference of $20,000. The tax rate at this time was 30%. During 2021, a new law was passed that changed the tax rate to 40% beginning in 2022. The change in tax rate was not known in advance. As of December 31, 2021, the temporary difference was $28,000. The journal entry for taxes in 2021 will include a: ✓(Click to select) debit to Deferred Tax Liability for $5,20 debit to Deferred Tax Liability for $2,400 credit to Deferred Tax Liability for $2,400 credit to Deferred Tax Liability for $5,200
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Credit to deffered tax liabilty 5200 Info given Temporary Difference 2800... View the full answer
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Posted Date:
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