Entry to adjust the balance in deferred tax assets

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Reference no: EM13865004

At the end of December 2013, Rosenfeld Co. had $10,000 of Deferred Tax Assets related to its Allowance for Doubtful Accounts. In response to low public approval ratings (and after a particularly boisterous holiday party), the US Congress passed a law to reduce the Federal Statutory Tax Rate from 35% to 20% on December 31, 2013. As a US company, Rosenfeld had to immediately adjust the balance of its DTAs based on the new law.

Which of the following items would be decreased by the entry to adjust the balance in Deferred Tax Assets? (check all that apply)

Cash from Investing Activities

Income Tax Expense

Deferred Tax Assets

Total Liabilities

Total Shareholders’ Equity

Reference no: EM13865004

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Entry to adjust the balance in deferred tax assets : At the end of December 2013, Rosenfeld Co. had $10,000 of Deferred Tax Assets related to its Allowance for Doubtful Accounts. In response to low public approval ratings (and after a particularly boisterous holiday party), the US Congress passed a law..

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