At December 31, 2018 PT ABC reported a deferred tax liability of Rp90.000 which was attributable to a taxable temporary difference of Rp300.000. The temporary difference is scheduled to reverse in 2022. During 2019, a new tax law increased the corporate tax rate from 30% to 40%. ABC should record this change by debiting: Retained Earnings for Rp9.000. Income Tax Expense for Rp9.000. Retained Earnings for Rp30.000. Income Tax Expense for Rp30.000.

At December 31, 2018 PT ABC reported a deferred tax liability of Rp90.000 which was attributable to a taxable temporary difference of Rp300.000. The temporary difference is scheduled to reverse in 2022. During 2019, a new tax law increased the corporate tax rate from 30% to 40%. ABC should record this change by debiting: Retained Earnings for Rp9.000. Income Tax Expense for Rp9.000. Retained Earnings for Rp30.000. Income Tax Expense for Rp30.000.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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*see attached problem REQUIRED: What is the net deferred tax expense for the current year?
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