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11 At December 31, 2025, Sandhill Corporation had a deferred tax liability of $415,800, resulting from future taotble aimounts of $1,890,000 and an enacted tax
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At December 31, 2025, Sandhill Corporation had a deferred tax liability of $415,800, resulting from future taotble aimounts of $1,890,000 and an enacted tax rate of 22%. In May 2026, a new income tax act is signeed into law that rases the tax fate io 25% for 2026 and future years. Prepare the journal entry for Sandhill to adjust the deferred tax liability. (Llst debit entry before credit entrx. Crobit occosint titiet are outomatically indented when amount is entered, Do not indent manuolly. If no entry is required, select "No Enthy" for the ocmunt tibier und enter O for the amounts) Step by Step Solution
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