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In August 2022, the government reduced the company tax rate from 30% to 25%, effective from 1 July 2022. As at 30 th June 2022,

In August 2022, the government reduced the company tax rate from 30% to 25%, effective from 1 July 2022. As at 30th June 2022, the balance of deferred tax accounts for Keepfit Ltd were as follows:

Deferred tax asset $ 21,000

Deferred tax liability $ 60,000

Required:

Provide journal entries to recognize the effect of the change in tax rates

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