At December 31, 2019, Palden Corporation had a deferred tax asset of $800,000, resulting from future deductible
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At December 31, 2019, Palden Corporation had a deferred tax asset of $800,000, resulting from future deductible amounts of $3.2 million and an enacted tax rate of 25%. In May 2020, new income tax legislation is signed into law that raises the tax rate to 30% for 2020 and future years. Prepare the journal entry for Palden to adjust the deferred tax account.
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Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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