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.

Answer rating: 100% (QA)

Deferred tax liability at the beginning 320000 Previous ta... View the full answer