Norvalis carries a deferred tax liability at 30% on a taxable difference of 400,000, arising from accelerated tax depreciation. A law enacted in December 20X5 sets the rate applicable on reversal at 28%. The difference is unchanged. Record the entry at 31 December 20X5.
- Taxable temporary difference
- 400,000
- Previous rate (%)
- 30 %
- New enacted rate (%)
- 28 %