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Strongarm Ltd has the following tax balances as at 30 June 2018: Deferred Tax Asset 81,000 Deferred Tax Liability 30,000 The balances were calculated when
Strongarm Ltd has the following tax balances as at 30 June 2018:
Deferred Tax Asset | 81,000 |
Deferred Tax Liability | 30,000 |
The balances were calculated when the tax rate was 30%. On 30 September 2018, the government announced a change to the company tax rate to 27%, effective immediately. Below is the journal entry to adjust the carry-forward balances of the deferred tax asset and deferred tax liability. Enter the account balance for ITE (as shown as xxx) below,
Dr. DTL | aaa |
|
Dr. ITE | xxx |
|
Cr. DTA |
| bbb |
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