(Solution) - At the end of 2007 Rowet Company reported a deferred -(2025 Original AI-Free Solution)

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At the end of 2007, Rowet Company reported a deferred tax liability of $6,120 based on an income tax rate of 30%. On June 1, 2008 Congress changed the income tax rate to 35%.
Required
1. Calculate the amount of the adjustment to Rowet Company?s 2007 year-end deferred tax liability.
2. Prepare the journal entry to correct Rowet Company?s deferred tax liability.