At December 31, 2015, Takeshi Corporation had a deferred tax liability of 680,000,000 resulting from future taxable

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At December 31, 2015, Takeshi Corporation had a deferred tax liability of ¥680,000,000 resulting from future taxable amounts of ¥2,000,000,000 and an enacted tax rate of 34%. In May 2016, a new income tax act is signed into law that raises the tax rate to 40% for 2016 and future years. Prepare the journal entry for Takeshi to adjust the deferred tax liability.

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Intermediate Accounting IFRS Edition

ISBN: 9781118443965

2nd Edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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