During its first three years of operations a company reported pre-tax book income of $1,000,000 in year 1, ($1,800,000) in year 2, and $3,000,000 in year 3. The income tax rate applicable to each of the years was 21%. Assume that there weren't any temporary differences and a valuation allowance was not necessary. Which of the following is incorrect regarding the Tax Cuts and Jobs Act of 2017? Multiple Choice U.S. GAAP changed in response to the tax law changes. Many companies needed to adjust existing deferred tax assets and liabilities. Income tax payable decreased for many corporations in 2017. The corporate tax rate decreased significantly. Increases in deferred tax liability balances represent a potential: Multiple Choice benefit. source of capital. source of cash flow. deterioration of earnings quality. Consistent with ASU 2018-02, stranded tax effects may be Multiple Choice written off against tax expense. recognized in current year income. amortized over the remaining life of the related tax item. reclassified from AOCI to Retained earnings