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At December 31,2019, Phillips Company had a deferred tax liability of $646,000 resulting from future taxable amounts of $1,700,000 and an enacted tax rate of

At December 31,2019, Phillips Company had a deferred tax liability of $646,000 resulting from future taxable amounts of $1,700,000 and an enacted tax rate of 38%.

It is known that in March 2020 a new income tax act is signed into law that raises the tax rate to 42% for 2020 and the upcoming future years.

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