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Exercise 16-20 (Algo) Deferred taxes, change in tax rates [LO16-3, 16-6] Shwonson Industries reported a deferred tax asset of $8.00 million for the year ended

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Exercise 16-20 (Algo) Deferred taxes, change in tax rates [LO16-3, 16-6] Shwonson Industries reported a deferred tax asset of $8.00 million for the year ended December 31, 2020 related to a temporary difference of $32 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022, at which time the deferred tax asset will reduce taxable income. There are no other temporary differences in 2020-2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 15% beginning in 2022 (The rate remains 25% for 2021 taxes.) Taxable income in 2021 is $42 million Required: 1. Prepare the appropriate journal entry to record Shwonson's income tax expense in 2021 2. What effect, will enacting the change in the 2022 tax rate, have on Shwonson's 2021 net income? es Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the appropriate journal entry to record Shwonson's income tax expense in 2021. (If no entry is required for a transaction/event select No Soumal entry required in the first account field. Enter your answers in millions rounded to 2 decimal places (1.4., 5,500,000 should be entered as 5.50).) View transaction list Journal entry worksheet 2021 that causes the tax rate to change from 25% to 15% beginning in 2022. (The rate remains 25% for 2021 taxes) Taxable income in 2021 is $42 million Required: 1. Prepare the appropriate journal entry to record Shwonson's income tax expense in 2021 2. What effect, will enacting the change in the 2022 tax rate, have on Shwonson's 2021 net income? Complete this question by entering your answers in the tabs below. Required 1 Required 2 COS What effect, will enacting the change in the 2022 tax rate, have on Shwonson's 2021 net income? (Enter your answer in million rounded to 1 decimal place de 5,500,000 should be entered as 5.5).) Swanson's 2021 net income wit million

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