At the end of 2013, Rowet Company reported a deferred tax liability of $6,120 based on an

Question:

At the end of 2013, Rowet Company reported a deferred tax liability of $6,120 based on an income tax rate of 30%. On January 2, 2014, Congress changed the income tax rate to 35%.

Required:

1. Calculate the amount of the adjustment to Rowet's 2013 year-end deferred tax liability.

2. Prepare the journal entry to correct Rowet's deferred tax liability.

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Intermediate Accounting Reporting and Analysis

ISBN: 978-1111822361

1st edition

Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach

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Question Posted: Sep 11, 2016 11:33 AM

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At the end of 2013, Rowet Company reported a deferred tax liability of $6,120 based on an

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1 6120 030 20400 future taxable amount at end of ...View the full answer

Intermediate Accounting Reporting and Analysis

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