Current Attempt in Progress

At December $31,2025,$ Flounder Corporation had a deferred tax liability of $$275,400,$ resulting from future taxable amounts of

$$1,620,000$ and an enacted tax rate of $17\%.$ In May $2026,$ a new income tax act is signed into law that raises the tax rate to $20\%$ for

$2026$ and future years.

Prepare the journal entry for Flounder to adjust the deferred tax liability. $($List debit entry before credit entry. Credit account titles are

automatically indented when 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.$)$

Account Titles and Explanation

Debit

Credit