EXERCISE 12.7 - Change in tax rates At 30 June 2020, Blue Ltd recognised a deferred tax asset of $9000 and a deferred tax liability of $12 000. This has resulted by applying a tax rate of 30%. The Australian government has determined to raise more revenue from companies by way of taxation. It announced that it will increase the tax rate as of 1 July 2020 to 35%. In its deferred tax worksheet for the year ending 30 June 2021, Blue Ltd calculated that its taxable temporary differences were $3000 and its deductible temporary differences were $9000. Required Prepare a report for the chief accountant on how the increase in the tax rate will affect the application of tax-effect accounting for the year ended 30 June 2021