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 Companys 2007 year-end deferred tax liability. 2. Prepare the journal entry to correct Rowet Companys deferred
Chapter 19, Exercises #16
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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Related Book For 
Intermediate Accounting
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
ISBN: 978-0324300987