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Bronson Industries reported a deferred tax liability of $ 5 . 7 5 million for the year ended December 3 1 , 2 0 2
Bronson Industries reported a deferred tax liability of $ million for the year ended December related to a temporary
difference of $ million. The tax rate was The temporary difference is expected to reverse in at which time the deferred
tax liability will become payable. There are no other temporary differences in Assume a new tax law is enacted in
that causes the tax rate to change from to beginning in The rate remains for taxes. Taxable income in
is $ million.
Required:
Prepare the appropriate journal entry to record Bronson's income tax expense in
What effect, will enacting the change in the tax rate, have on Bronson's net income?
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