At the end of 2019, Sentry Company reported a deferred tax liability of $6,120 based on an income tax rate of 30%. On January 2, 2020, Congress changed the income tax rate to 35%. Calculate the amount of the adjustment to Sentry’s 2019 year-end deferred tax liability.
At the end of 2019, Sentry Company reported a deferred tax liability of $6,120 based on an income tax rate of 30%. On January 2, 2020, Congress changed the income tax rate to 35%. Calculate the amount of the adjustment to Sentry’s 2019 year-end deferred tax liability.
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 15P
Related questions
Question
At the end of 2019, Sentry Company reported a
Calculate the amount of the adjustment to Sentry’s 2019 year-end deferred tax liability.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning