Sheridan Inc.$\text{'}$s only temporary difference at the beginning and end of $2024$ is caused by a $$3\mathrm{.}21$ million deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable $($only one$-$half of which is classified as a current asset$)$ is due in equal installments in $2025$ and $2026.$ The related deferred tax liability at the beginning of the year is $$963,000.$ In the third quarter of $2024,$ a new tax rate of $20\%$ is enacted into law and is scheduled to become effective for $2026.$ Taxable income for $2024$ is $$5,350,000,$ and taxable income is expected in all future years.

$($a$)$

$*$ Your answer is correct.

Determine the amount reported as a deferred tax liability at the end of $2024.$

Deferred tax liability $

eTextbook and Media

List of Accounts

Attempts: $1$ of $5$ used

$($b$)$

Prepare the journal entry necessary to adjust the deferred tax liability when the new tax rate is enacted into law. $($List debit entry before credit entry. Credit account titles are automatically

$($b$)$

Prepare the journal entry necessary to adjust the deferred tax liability when the new tax rate is enacted into law. $($List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$$

eTextbook and Media

List of Accounts

Attempts: $0$ of $5$ used

$($c$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.Sheridan Inc.$\text{'}$s only temporary difference at the beginning and end of $2024$ is caused by a $$3\mathrm{.}21$ million deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable $($only one$-$half of which is classified as a current asset$)$ is due in equal installments in $2025$ and $2026.$ The related deferred tax liability at the beginning of the year is $$963,000.$ In the third quarter of $2024,$ a new tax rate of $20\%$ is enacted into law and is scheduled to become effective for $2026.$ Taxable income for $2024$ is $$5,350,000,$ and taxable income is expected in all future years.

$($a$)$

$*$ Your answer is correct.

Determine the amount reported as a deferred tax liability at the end of $2024.$

Deferred tax liability $

eTextbook and Media

List of Accounts

Attempts: $1$ of $5$ used

$($b$)$

Prepare the journal entry necessary to adjust the deferred tax liability when the new tax rate is enacted into law. $($List debit entry before credit entry. Credit account titles are automatically

$($b$)$

Prepare the journal entry necessary to adjust the deferred tax liability when the new tax rate is enacted into law. $($List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$$

eTextbook and Media

List of Accounts

Attempts: $0$ of $5$ used

$($c$)$

The parts of this question must be completed in order. This part will be available when you complete the part above.