Question: At December 3 1 , 2 0 2 4 , Crane Corporation reported a deferred tax liability of $ 1 8 0 0 0 0

At December 31,2024, Crane Corporation reported a deferred tax liability of

At December 31,2024, Crane Corporation reported a deferred tax liability of $180000 which was attributable to a taxable temporary difference of $680000. The temporary difference is scheduled to reverse in 2025. In 2025, a new tax law increased the corporate tax rate from 20% to 30%. Crane should record this change by debiting
Income Tax Expense for $68000.
Retained Earnings for $18000.
Income Tax Expense for $18000.
Retained Earnings for $68000.
$180000 which was attributable to a taxable temporary difference of $680000. The

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