Chapter $18$ Practice Corporate Tax

Question $9$

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Recording Income Tax with Changing Tax Rates over the next three years. In late Year $1,$ the enacted tax rate increased to $42\mathrm{.}5\%$ beginning in Year $3.$

a$.$ Determine the income tax rate that is the enacted rate for Year $1.$

Income tax rate for Year $1$:

b$.$ What journal entry should the Jets record to adjust the deferred tax liability, if any, on December $31$ of Year $1?$

$\backslash$table$[[,$Year $2,$Year $3,$Year $4,,],[$Reversal of difference between GAAP and tax bases,$$,0,$$$,0,$$