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please answer b and c Pharoah Inc.'s only temporary difference at the beginning and end of 2022 is caused by a $2.24 million deferred gain
please answer b and c
Pharoah Inc.'s only temporary difference at the beginning and end of 2022 is caused by a $2.24 million deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable is due in equal installments in 2023 and 2024. The related deferred tax liability at the beginning of the year is $896,000. In the third quarter of 2022, a new tax rate of 34% is enacted into law and is scheduled to become effective for 2024. Taxable income for 2022 is $5,600,000, and taxable income is expected in all future years. Prepare the journal entry (if any) necessary to adjust the deferred tax liability when the new tax rate is enacted into law. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit (c) The parts of this question must be completed in order. This part will be available when you complete the part aboveStep by Step Solution
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