The federal tax rate has been 35% number of years. Assume in the third quarter of 2020 new rate of 4

The federal tax rate has been 35% number of years. Assume in the third quarter of 2020 new rate of 40% is approved effective January 1, 2020. At the beginning of the year you had deferred tax assets of ten million and deferred tax liability of six million. You estimate the pretax gaap income will be approximately 5 million in 2020 and that the taxable income will be about 7 million. The company is publicly traded with the 500,000 shares outstanding all year. What effect will be tax rate increase have a balance sheet and income statement for the company for the year 2020? Can actions be taken to minimize the effect?

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