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Question - Assume ABC reports $3,000,000 of financial income in 2002 and they continue to receive $200,000 of municipal bond interest. Further assume that they pay the 35% taxes in 2002, but now expect the future tax rate (starting in 2003) will be 25%. What is the journal entry necessary at the end of 2002 (second year) to adjust the deferred tax asset (or liability), and record tax expense and tax payable based on the above set of facts?
How will ABC report the deferred tax asset/liability on the 2002 balance sheet [please include (1) the amount and (2) the proper classification (current/non- current and asset/liability) in your answer]?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
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