Interest Income		60,000
Income before income tax		$ 1,340,000

Retained earnings on January 1, 2023 were $310,000.

No income tax has yet been accrued. A new tax law was enacted in 2023, which will cause Company's income tax rate to change from 25% to 20% beginning in 2024. The interest income reported on the 2023 income statement was accrued for 2023 but will be received in June of 2024.

Record the appropriate entry to recognize income tax.

Income tax expense ....

Deferred tax asset ........

Income tax payable ........