Typical Corp. reported a deferred tax liability of $3,575.000 for the year nded December 31, 2020,...

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Typical Corp. reported a deferred tax liability of $3,575.000 for the year nded December 31, 2020, when the tax rate was 25%. The deferred tax liability was related to a temporary difference of $14,300,000 caused by an installment sale in 2020. The temporary difference is expected to reverse in 2022 when the income deferred from taxation will become taxable. There are no other temporary differences. Assume a new tax law passed in 2021 and the tax rate, which will remain at 25% through December 31, 2021, will become 47% for tax years beginning after December 31, 2021. Pretax accounting income and taxable income for the year 2021 is $23,000,000. Required: Prepare a compound journal entry to record Typical's income tax expense for the year 2021 (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the income taxes. Typical Corp. reported a deferred tax liability of $3,575.000 for the year nded December 31, 2020, when the tax rate was 25%. The deferred tax liability was related to a temporary difference of $14,300,000 caused by an installment sale in 2020. The temporary difference is expected to reverse in 2022 when the income deferred from taxation will become taxable. There are no other temporary differences. Assume a new tax law passed in 2021 and the tax rate, which will remain at 25% through December 31, 2021, will become 47% for tax years beginning after December 31, 2021. Pretax accounting income and taxable income for the year 2021 is $23,000,000. Required: Prepare a compound journal entry to record Typical's income tax expense for the year 2021 (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the income taxes.

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