Rice Corp. has tax depreciation in excess of financial reporting depreciation of $100,000 in Year 1. The timing difference is expected to reverse $30,000 in Year 2 and $70,000 in Year 3. In Year 1, the enacted tax rates were 40% for Year 1 and thereafter. However, during Year 2, the enacted rate was changed to 30% for Year 3 and thereafter. Rice records the journal entry for deferred taxes at the end of Year 2 at the tax rate of 40%, and then prepares an adjusting entry to appropriately revalue the deferred tax account at year-end. What are the entries required to record the adjusting entry for the change in enacted tax rates?

Please explain and give calculations and journal entries!