Question: 14. Addison Ltd. has one temporary difference at the beginning of 2024 of 500,000. The deferred tax liability established for this amount is 150,000, based

14. Addison Ltd. has one temporary difference at the beginning of 2024 of £500,000. The deferred tax liability established for this amount is £150,000, based on a tax rate of 30%. The temporary difference will provide the following taxable amounts: £100,000 in 2025, £200,000 in 2026, and £200,000 in 2027. If a new tax rate for 2024 of 20% is enacted into law at the end of 2024, what is the journal entry necessary in 2024

(if any) to adjust deferred taxes?

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