The following information is available for Alexander Corporation for $2023$:

$1.$ Depreciation reported on the tax return exceeded depreciation reported on the income statement by $$234,000.$ The differences will reverse as follows.

$2024156,000$

$202539,000$

$202639,000$

$2.$ Annual interest received on municipal bonds was $$21,000$ in $2023$ and $$20,000$ in $2024.$

$3.$ Rent collected in advance on December $1,2023,$ totaled $$198,000$ for a $3-$year period. Rent was recognized monthly, starting on December $1,2023$ for book purposes.

$4.$ During $2023$ and $2024,$ Alexander paid $$40,000($each year$)$ for a life insurance policy on its executives, with Alexander as the beneficiary. In $2024,$ Alexander received $$290,000$ due to the untimely passing of its CFO.

$5.$ The tax rates are $25\%$ for $2023$ and $2024,$ and $30\%$ for $2025$ and beyond.

$6.$ A contingent loss due to litigation was accrued in $2023$ for $$230,000.$ The company expects to pay the loss in $2025.$

$7.$ Pretax financial income for the year ended December $31,2023$ was $$6,425,000,$ and $$6,195,000$ for the year ended December $31,2024.$

$8.$ The company has a $$5,800$ credit balance in the Valuation Allowance and a beginning balance of $$22,500$ in the DTA account due to a temporary difference of $$90,000$ caused by a deferred revenues for GAAP purposes. The difference was realized for tax purposes in $2023.$

$9.$ Of the ending balance of the DTA account, the company believes that it is "more likely than not" that $10\%$ will not be realized.

$10.$ On $1/1/2024,$ a surprise tax cut was implemented, causing the $2024$ tax rate to increase by $2\%,$ and the $2025$ and beyond tax rates to decrease by $2\%.$ What is the journal entry to record the adjustment to the DTA$/$DTL balances, and the valuation allowance.

Instructions

Assuming no other differences between book and taxable incomes existed, except for those mentioned above, prepare the $2024$ tax rate change journal entry, and the year end income tax journal entries to record Income Tax Expense, Deferred Tax Asset$/$Liability$,$ Income Taxes Payable and Valuation Allowance for $2024($separate the valuation allowance journal entry from the income tax expense journal entry$).$