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At December 31, 2012, Fell Corporation had a deferred tax liability of $703,902, resulting from future taxable amounts of $2,070,300 and an enacted tax rate of 34%. In May 2013, a new income tax act is signed into law that raises the tax rate to 41% for 2013 and future years. Prepare the journal entry for Fell to adjust the deferred tax liability.
Image text transcribed for accessibility At December 31, 2012, Fell Corporation had a deferred tax liability of $703,902, resulting from future taxable amounts of $2,070,300 and an enacted tax rate of 34%. In May 2013, a new income tax act is signed into law that raises the tax rate to 41% for 2013 and future years. Prepare the journal entry for Fell to adjust the deferred tax liability.
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