Question: Ramirez Corp has a deferred tax liability on its balance sheet for $320,000 resulting from a temporary difference of $128,000,000 due to the difference in

Ramirez Corp has a deferred tax liability on its balance sheet for $320,000 resulting from a temporary difference of $128,000,000 due to the difference in depreciation rates between tax and book. Congress just passed a bill raising the current tax rate from 25% (including state income taxes) to 34% (including state income taxes).

Required: Make the appropriate entry to record the change in tax rates.

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