Addison Co. has one temporary difference at the beginningof 2017 of $500,000. The deferred tax liabilityestablished for this amount is $150,000, based on a taxrate of 30%. The temporary difference will provide thefollowing taxable amounts: $100,000 in 2018, $200,000in 2019, and $200,000 in 2020. If a new tax rate for 2020of 20% is enacted into law at the end of 2017, what isthe journal entry necessary in 2017 (if any) to adjustdeferred taxes?
Addison Co. has one temporary difference at the beginningof 2017 of $500,000. The deferred tax liabilityestablished for this amount is $150,000, based on a taxrate of 30%. The temporary difference will provide thefollowing taxable amounts: $100,000 in 2018, $200,000in 2019, and $200,000 in 2020. If a new tax rate for 2020of 20% is enacted into law at the end of 2017, what isthe journal entry necessary in 2017 (if any) to adjustdeferred taxes?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter18: Accounting For Income Taxes
Section: Chapter Questions
Problem 8E: Incomc Taxes Then Company has been in operation for several years. It has both a deductible and a...
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Addison Co. has one temporary difference at the beginning
of 2017 of $500,000. The
established for this amount is $150,000, based on a tax
rate of 30%. The temporary difference will provide the
following taxable amounts: $100,000 in 2018, $200,000
in 2019, and $200,000 in 2020. If a new tax rate for 2020
of 20% is enacted into law at the end of 2017, what is
the
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