Business, 23.05.2020 03:01 louiecampos
Bronson Industries reported a deferred tax liability of $13.2 million for the year ended December 31, 2017, related to a temporary difference of $33 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 2017β2019. 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 $43 million.
Required:
a. Determine the effect of the change and prepare the appropriate journal entry to record Bronson's income tax expense in 2016.
b. What adjustment, if any, is needed to revise retained earnings as a result of the change?
Answers: 1
Business, 22.06.2019 19:20
This problem has been solved! see the answerwhich of the following statements is correct? the consumer price index is a measure of the overall level of prices, whereas the gdp deflator is not a measure of the overall level of prices. if, in the year 2011, the consumer price index has a value of 123.50, then the inflation rate for 2011 must be 23.50 percent. compared to the gdp deflator, the consumer price index is the more common gauge of inflation. the consumer price index and the gdp deflator reflect the goods and services bought by consumers equally well.
Answers: 2
Business, 22.06.2019 21:20
Which of the following best describes the advantage of living in a suburban area? a. suburbs give people access to city jobs along with more living space. b. suburbs give people easy access to cultural attractions and high-paying jobs. c. suburbs have the widest availability of low-cost housing of any living area. d. suburbs have the lowest population density of any living area.
Answers: 1
Business, 23.06.2019 12:10
Suppose that, on the basis of a nationβs production possibilities curve, an economy must sacrifice 10,000 pizzas domestically to get the 1 additional industrial robot it desires but that it can get the robot from another country in exchange for 9,000 pizzas. now consider the following statement: βthrough international specialization and trade, a nation can reduce its opportunity cost of obtaining goods and thus βmove outside its production possibilities curve.ββ
Answers: 3
Bronson Industries reported a deferred tax liability of $13.2 million for the year ended December 31...
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