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Exercise 16-17 Deferred taxes; change in tax rates [L016-1, 16-5] Bronson Industries reported a deferred...

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Exercise 16-17 Deferred taxes; change in tax rates [L016-1, 16-5] Bronson Industries reported a deferred tax liability of $8.8 million for the year ended December 31, 2017, related to a temporary difference of $22 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 2017-2019. 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 $32 million Required Prepare the appropriate journal entry to record Bronson's 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.) View transaction list Journal entry worksheet 2 Record 2018 income taxes Note: Enter debits before credits Event General Journal Debit Credit Record entry Clear entry View general journal

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