Addison Ltd. has one temporary difference at the beginning of 2021 of 500,000. The deferred tax liability
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Addison Ltd. has one temporary difference at the beginning of 2021 of £500,000. The deferred tax liability 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 2022, £200,000 in 2023, and £200,000 in 2024. If a new tax rate for 2021 of 20% is enacted into law at the end of 2021, what is the journal entry necessary in 2021 (if any) to adjust deferred taxes?
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Related Book For
Intermediate Accounting IFRS
ISBN: 9781119607519
4th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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