19-11
At December 31, 2017, Vaughn Corporation had a deferred tax liability of $642,200, resulting from future taxable amounts of $1,690,000 and an enacted tax rate of 38%. In May 2018, a new income tax act is signed into law that raises the tax rate

19-11
At December 31, 2017, Vaughn Corporation had a deferred tax liability of $642,200, resulting from future taxable amounts of $1,690,000 and an enacted tax rate of 38%. In May 2018, a new income tax act is signed into law that raises the tax rate to 45% for 2018 and future years. Prepare the journal entry for Vaughn to adjust the deferred tax liability. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit