Bellinzona Co. reported a deferred tax liability of $24 million for the year ended December 31, 2020, related to a temporary difference of $60 million. The tax rate was 25%. The temporary difference is expected to reverse in 2022 at which time the deferred tax liability will become payable. There are no other temporary differences in 2020-2022. Assume a new tax law is enacted in 2021 that causes the tax rate to change from 25% to 20% beginning in 2022. (The rate remains 25% for 2021 taxes.) Taxable income in 2021 is $100 million.

Requirements: (ALL NUMBERS ARE IN MILLIONS)

(1) Determine the effect of the change on the company's retained earnings (in millions):

(2) Prepare the appropriate journal entry to record Bellinzona's income tax expense in 2021. Use positive numbers for debits and brackets (XXX) for credits:

Total income tax expense (in millions):

Deferred tax liability (in millions):

Income tax payable (in millions):