At December 31, 2013, Palden Corporation had a deferred tax asset of $675,000, resulting from future deductible
Question:
At December 31, 2013, Palden Corporation had a deferred tax asset of $675,000, resulting from future deductible amounts of $2.7 million and an enacted tax rate of 25%. In May 2014, new income tax legislation is signed into law that raises the tax rate to 27% for 2014 and future years. Prepare the journal entry for Palden to adjust the deferred tax account.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Intermediate Accounting
ISBN: 978-1118300855
10th Canadian Edition Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
Question Posted: