The current tax code provides for a tax rate of $21\%($ignore any corporate min tax possibility$),$ Assume that Congress has just passed a change in the tax rate from $21\%$ to $15\%$ effective January $1,2025.$

At December $31,2023$ Wright Industries has only one item of deferred tax. There is a deferred tax asset in the amount of $$21,000.$ There are no other temporary differences in the period $2023-2025.$ The book income before tax and the tax able income in $2024$ are $$500,000.$ There are no permanent differences between $2023-2025$

Requirements:

$1)$ Prepare the $2024$ entry to record income tax expense. Show all supporting calculations.

$2)$ What effect did the $2025$ decrease in the tax rate have on the $2024$ net income of Wright Industries. Show all supporting calculations.

$3)$ What is the $2024$ effective tax rate? Why isn$$t it $21\%?$

Explain and include supporting calculations.