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Cullumber Corporation's only temporary difference at the beginning and end of 2024 is caused by...

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Accounting

Cullumber Corporation's only temporary difference at the beginning and end of 2024 is caused by a $2.10 million litigation accrual
that is expected to be settled in 2026. The related deferred tax asset at the beginning of the year is $840,000. In the third quarter of
2024, a new tax rate of 20% is enacted into law and is scheduled to become effective for 2026. Taxable income for 2024 is $6,090,000,
and taxable income is expected in all future years.
(a)
Your answer is correct.
Determine the amount reported as a deferred tax asset at the end of 2024.
Deferred tax asset $
eTextbook and Media
List of Accounts
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Attempts: 2 of 4 used
(b)
Prepare the journal entry (if any) necessary to adjust the deferred tax asset when the new tax rate is enacted into law. (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. List debit entry before credit entry.)
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