On December 31, 2019, the Town Hall Company had a deferred tax liability balance of $12,570, arising from an excess of MACRS depreciation for tax purposes over straight-line depreciation for accounting purposes. The tax effects of that timing difference are expected to reverse in the following years: Year Timing Difference Enacted Tax Rate Deferred Tax Liability 2020 $16,000 30% $4,800 2021 9,500 35% 3,325 2022 12,700 35% 4,445 $12,570 On January 27, 2020, Congress raised the effective income tax rate to 38% for all future years, including the current year, 2020. Required: Prepare the entry to record any adjustments necessary due to the income tax rate increase on January 27, 2020