Addison Co. has one temporary difference at the beginning of 2020 of $500,000. The deferred tax liability established for this amount is $150,000, based on a tax rate of 30%. The temporary difference will provide the following taxable amounts: $100,000 in 2021, $200,000 in 2022, and $200,000 in 2023. If a new tax rate for 2023 of 20% is enacted into law at the end of 2020, what is the journal entry necessary in 2020 (if any) to adjust deferred taxes?

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A:

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Filing Federal Income Tax Return

A tax is the amount of money paid to the government on the revenue earned by the individual or business organization. It acts as an income for the government and an expense for the individual or business organization. There are different regulations regarding filing an income tax return in other countries.