Answered
At December 31,2015,the Floyd Company reported a $29,600 deferred tax asset pertaining to a $80,000 temporary difference which will reverse equally during the next four years;Floyd also reported a $7,400 deferred tax liability pertaining to a $20,000 temporary difference which will reverse during 2016.After determining the deferred tax asset and liability on December 31,2015,Floyd's management was informed that the income tax rate for years subsequent to 2015 had been changed to 35%.As a result of the tax rate change,Floyd's 2015 income tax expense will
A) increase $1,200.
B) decrease $1,200.
C) decrease $444.
D) increase $444.
On Jun 23, 2024