a. In early December, Jack asks for your help. Determine the anticipated deferred tax asset and liability account balances at the end of 2017. Show
a. In early December, Jack asks for your help. Determine the anticipated deferred tax asset and liability account balances at the end of 2017. Show the anticipated journal entry for the year if Skywalker expects a taxable income of $25,000,000.
b. After the TCJA was signed on December 22, 2017, Jack asks you to again help by determining the anticipated deferred tax asset and liability account balances at the end of 2017. Show the new anticipated journal entry for the year if Skywalker expects a taxable income of $25,000,000.
c. Comment on the differences you calculated in the prior two requirements. What was the effect of the tax rate reduction for Skywalker? What would the effect have been for a company that has more deferred tax assets than liabilities at the end of 2017?
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