Question
. At the end of 2021 (i.e., the beginning of 2022), Willy Nelsons Fine Herbs, Inc. had one temporary difference of $400,000 (which will reverse
. At the end of 2021 (i.e., the beginning of 2022), Willy Nelsons Fine Herbs, Inc. had one temporary difference of $400,000 (which will reverse in 2023) that lead to a deferred tax liability of $140,000 based upon a tax rate of 35%. No temporary differences originated or reversed in 2022. On December 30th , 2022 a change to the tax code was enacted that changed the rate to 25% beginning in January of 2023. If Willy Nelsons had $1,000,000 of taxable income in 2022, what was the tax expense reported for 2022?
$350,000
None of the other answers
$310,000
$390,000
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