At the end of $2022,$ Whispering Winds Corporation reported a deferred tax liability of $$42,500.$ At the end of $2023,$ the company had

$$246,000$ of temporary differences related to property, plant, and equipment. Depreciation expense on this property, plant, and

equipment has been lower than the CCA claimed on Whispering Winds's income tax returns. The resulting future taxable amounts are

as follows:

The tax rates enacted as of the beginning of $2022$ are as follows: $31\%$ for $2022$ and $2023$; $30\%$ for $2024$ and $2025$; and $25\%$ for $2026$

and later. Taxable income is expected in all future years.

$($a$)$

Your answer is partially correct.

Calculate the deferred tax account balance at December $31,2023.$Early in $2024,$ after the $2023$ financial statements were released, new tax rates were enacted as follows: $29\%$ for $2024$ and $27\%$

for $2025$ and later.

Prepare the journal entry for Whispering Winds to recognize the change in tax rates. Note that this adjustment is for the change

in tax rates only. Ignore the adjustment that will be needed in $2024$ to reflect the reversal of the temporary difference. $($List debit

entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry

is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Date

Account Titles and Explanation

Debit

Credit

December

$31,2024$