At December 31, 2007. Tick Corporation had a deferred tax liability of $680,000, resulting from future taxable

Question:

At December 31, 2007. Tick Corporation had a deferred tax liability of $680,000, resulting from future taxable amounts of $2,000,000 and an enacted tax rate of 34%. In May 2008, a new income tax act is signed into law that raises the tax rate to 38% for 2008 and future years. Prepare the journal entry for Tick to adjust the deferred tax liability.


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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Intermediate Accounting principles and analysis

ISBN: 978-0471737933

2nd Edition

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

Question Posted: