Question: On 12/31/5, Mocha-Cola determined that its deferred tax liability was $950,000. The tax rate is 35% for 2015 and 40% for 2016. As of 12/31/16, Mocha-Cola has determined that its deferred tax liability is now $300,000. What is the amount of the adjustment that Mocha-Cola will make:
a) To its balance sheet?
b) To its income statement?