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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1 6 120 0 30 20 400 future taxable amount at en...View the full answer
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Related Book For
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
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