At December 31, 2014 Raymond Corporation reported a deferred tax liability of $120,000 which was attributable to a taxable type temporary difference of $400,000. The
At December 31, 2014 Raymond Corporation reported a deferred tax liability of $120,000 which was attributable to a taxable type temporary difference of $400,000. The temporary difference is scheduled to reverse in 2018. During 2015, a new tax law increased the corporate tax rate from 30% to 35%. Raymond should record this change by debiting
a. Retained Earnings for $20,000.
b. Retained Earnings for $6,000.
c. Income Tax Expense for $20,000.
d. Income Tax Expense for $6,000.
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Authors: Kermit D. Larson, William W. Pyle
4th Edition
0256067813, 978-0256067811
