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Blossom Inc's only temporary difference at the beginning and end of 2024 is caused by...

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Accounting

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Blossom Inc's only temporary difference at the beginning and end of 2024 is caused by a $3.69 milion deferred gain for tax purposes for an installment sale of a plant asset, and the related recelvable (only one-half of which is classified as a current asset) is due in equal instaliments in 2025 and 2026. The related deferred tax liability at the beginning of the year is $1,107,000. In the third quarter of 2024, a new tax rate of 20% is enacted into law and is scheduled to become effective for 2026 . Taxable income for 2024 is $6,150,000 and taxable income is expected in all future years. Prepare the journal entry necessary to adjust the deferred tax liability when the new tax rate is enacted into law. (List debit entry before credit entry. Credit account titles are outomatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)

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