Answer:
Dr Income Tax Expense 120,000
Cr Deferred Tax Liability 120,000
Explanation:
Deferred tax liability can be defined as the tax liability which has been due for the current period but has not yet been paid such as installment sales receivable.
Fell Corporation journal entry for to adjust the deferred tax liability
Dr Income Tax Expense 120,000
Cr Deferred Tax Liability 120,000
$2,000,000 x .4 = $800,000
$800,000- $680,000 = $120,000
