A business has a Deferred Tax Asset of $35,000.Now, the government has just changed the statutory tax

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

Question:

A business has a Deferred Tax Asset of $35,000. Now, the government has just changed the statutory tax rate from 35% to 30% effective immediately.

What is the correct journal entry to record the impact of this tax rate change?

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

See More Books

Posted Date: Apr 19, 2023 02:23 AM

See More Questions

Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
The current system for paying company tax was introduced by the Australian Government on 1 July 2000 as part of its legislation introducing the goods and services tax (GST). The effect of this system...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
Why are variances usually written off to cost of goods sold?
In 2009, what was the maximum amount that an employee could contribute to a 401(k) plan?
Finance executives need to know and understand the corporate governance environment in which they operate. 1. Visit the European Corporate Governance Institute website (www.ecgi.org) and download the...
True or False: Balancing a rotor suspected of running near a resonant frequency calls for care when increasing the size of the trial weight indicated by a balance program.
A stream of hot dry nitrogen flows through a process Unit that contains liquid acetone. A substantial portion of the acetone vaporizes and is carried off by the nitrogen. The combined gases leave the...
Explain how RTOS are utilized in embedded systems for industrial, automotive, or aerospace applications. What are the key design principles for integrating RTOS into embedded devices with strict...
1. Who are the followers at Bluebird Care? 2. In what way is followership related to the mission of the agency? Do Robin and her managers recognize the importance of followership? Explain. 3. Using...
Determine the NPV for the Electro bicycle project. Use the annual project cash flow from the table. For the required rate of return use 25%. Table 1 Projected Electrobicycle Financial Projection...
ARU systems provide several options for callers that identify specific departments or services that callers can be connected with directly. What kinds of caller options might be appropriate for an...
Year-to-date, Conglomco has earned a 1.64 percent return, Supercorp has earned a 5.69 percent return, and Megaorg has earned a 0.23 percent return. If your portfolio is made up of 40 percent...
6. Consider a binomial option pricing setting in which u=1.15, d=0.94, rf=1.06 and So=$15.00. What is the Binomial Option Pricing Model value of a call with a strike price of $16?
answer the following questions: 1. What are some pros and cons of using resume screening tools? 2. What impact are they having on management? 3. How might the drawbacks associated with resume...
How to build a sustainable investment portfolio and illustrate the answer with an example?
As part of a promotional campaign, Funzy Cereal includes a coupon in every issue of various national magazines and offers a toy car for $1.60 and 2 coupons. The cars cost Funzy $2.10 each. Experience...
Let (x) = x 2 - 9, g(x) = 2x, and h(x) = x - 3. Find each of the following. (((--) 2
At the beginning of 2011, Terra Lumber Company purchased a timber tract from Boise Cantor for $3,200,000. After the timber is cleared, the land will have a residual value of $600,000. Roads to enable...
Disclosure notes are an integral part of the information provided in financial statements. In what ways are the notes critical to understanding the financial statements and to evaluating the firm's...
Explain the difference between an ordinary annuity and an annuity due.
A crystal sample of bacteriorhodpsin, a light-sensitive protein found in halobacteria that responds to light energy, has crystal planes separated by 0.20 nm. If a beam of 11 keV x rays illuminates a...
A nickel crystals work function is measured to be 5.22 eV at 25C. As the temperature increases by 300C, the work function drops by 50 meV. By how much does this shift the threshold wavelength for...
Investigators have created structures consisting of linear chains of ionized atoms on a smooth surface. Electrons are restricted to travel along the chain. The energy levels of the electrons match...

A business has a Deferred Tax Asset of $35,000.Now, the government has just changed the statutory tax

Question:

Expert Answer:

The change in the statutory tax rate will affect the value o... View the full answer

Intermediate Accounting

Students also viewed these accounting questions