B Co. reported a deferred tax liability of $24 million for the year ended December 31, 2017, related to a temporary difference of $60 million. The tax rate was 40%. The temporary difference is expected to reverse in 2019 at which time the deferred tax liability will become payable. There are no other temporary differences in 2017-2019. Assume a new tax law is enacted in 2018 that causes the tax rate to change from 40% to 30% beginning in 2019. (The rate remains 40% for 2018 taxes.) Taxable income in 2018 is $90 million. Required: Determine the effect of the change and prepare the appropriate journal entry to record B's income tax expense in 2018.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “B Co. reported a deferred tax liability of $24 million for the year ended December 31, 2017, related to a temporary difference of $60 ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
In financial management, risk is referred to as the environmental factors that may affect a business adversely. internal factors that may disrupt the smooth functioning of a company. degree of uncertainty about the actual outcome of a decision.
Answers (1)
In 3-5 sentences, describe how good e-mail work habits increase workplace efficiency and productivity.
Answers (1)
Goods 1990 Quantities 1990 Prices 2012 Quantities 2012 Prices papayas 10 $1.00 20 $0.50 fish 15 $0.60 20 $0.80 skirts 8 $4.00 15 $4.00 Refer to the above data Assuming that 1990 is the base year, Real GDP in 2012 is: a. $49 b. $51 c. $86 d. $92. e.
Answers (1)
If the rate of inflation is higher than your interest rate on your savings account you are losing buying power true or false?
Answers (1)
The following T-accounts record the operations of Oriole Co.: Assume all raw materials are direct materials.
Answers (1)
New Questions in Business
Jake can complete an oil change in 45 minutes and he can write a poem in 90 minutes. Ming-la can complete an oil change in 30 minutes and she can write a poem in 90 minutes.
Answers (1)
Samantha, a one-third partner, has an adjusted basis of $90,000 for her partnership interest. If Samantha sells her entire partnership interest to Emma for $100,000 cash, what is the amount and character of Samantha's gain or loss from the sale? a.
Answers (1)
In a process cost system, the amount of work in process inventory is valued by a. allocating departmental costs between completed and partially completed units b. finding the sum of all completed jobs c.
Answers (1)
You may choose a standardized tool because A. such tools often capture learning in all of the domains. B. such tools are fail-proof. C. such tools capture spontaneous, child-directed learning. D. you're required to use it.
Answers (1)
After you have put a marketing plan in place, it is important to do what? A Monitor the results B. Increase the price Reduce your advertising Segment the market
Answers (1)