At December 31, 2006, Tick Corporation had a deferred tax liability of $680,000, resulting from future taxable

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At December 31, 2006, Tick 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 2007, a new income tax act is signed into law that raises the tax rate to 38% for 2007 and future years. Prepare the journal entry for Tick to adjust the deferred tax liability.

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Intermediate Accounting 2007 FASB Update Volume 2

ISBN: 9780470128763

12th Edition

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

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