At December 31, 2025, Fell Corporation had a deferred tax liability of $340,000, resulting from future taxable

Question:

At December 31, 2025, Fell Corporation had a deferred tax liability of $340,000, resulting from future taxable amounts of $2,000,000 and an enacted tax rate of 17%. In May 2026, a new income tax act is signed into law that raises the tax rate to 20% for 2026 and future years. Prepare the journal entry for Fell to adjust the deferred tax liability.

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

Step by Step Answer:

Related Book For  answer-question

Intermediate Accounting

ISBN: 9781119790976

18th Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

Question Posted: