At December 31, 2010, Fell Corporation had a deferred tax liability of $680,000, resulting from future taxable

Question:

At December 31, 2010, Fell Corporation had a deferred tax liability of $680,000, resulting from future taxable amounts of $2,000,000 and an enacted tax rate of 34%. In May 2011, a new income tax act is signed into law that raises the tax rate to 40% for 2011 and future years. Prepare the journal entry for Fell to adjust the deferred tax liability.

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...