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Bronson Industries reported a deferred tax liability of $14.8 million for the year ended December...

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Accounting

Bronson Industries reported a deferred tax liability of $14.8 million for the year ended December 31, 2017, related to a temporary difference of $37 million. The tax rate was 40%. The temporary difference is expected to reverse in 2019 at which time the deferred tax liability will become payable. There are no other temporary differences in 20172019. Assume a new tax law is enacted in 2018 that causes the tax rate to change from 40% to 30% beginning in 2019. (The rate remains 40% for 2018 taxes.) Taxable income in 2018 is $47 million. Required: Prepare the appropriate journal entry to record Bronsons income tax expense in 2018. What adjustment, if any, is needed to revise retained earnings as a result of the change? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions and round your answers to 1 decimal place.)

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