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Pharoah Tar and Gravel Ltd. operates a road construction business. In its first year of operations. the company won a contract to builis a road for the municipality of Cochrane West. It is estimated that the project will be completed over a three year period starting in June 2023. Pharoah uses the percentage-of-completion method of recognizing revenue on its long-term construction cantracts. For tax purposes, and in order to postpone the tax on such revenue for as long as possible. Pharoah uses the completed-contract mathos? allowed by the CRA. For the second year of operations, Pharoah made progress on the construction of the road for the municipality. The account balances at December 31, 2024, for the construction project and the accounting and tax balances of accounts related to the equipment used for construction follow. (The balances at December 31, 2023, are also listed) Pharoah's tax rate was 25% in 2023 and 2024 . The enacted tax rate for 2025 and subsecuent years was reducod to 2005 on 5 eptenber 15, 2024. Income before income tax for the year ended December 31, 2023, was $196,900 and for December 31, 2024, was $120,800. Pharoah reports under IFRS. (a) Prepare the joumal entry to record the effect of the change in the enacted tax rate. (List debit entry before credit entry, Credit account titles are automatically indented when the amount is entered. Do not indent manuolly If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Round answers to 0 decimal ploces, es. 5.275.)

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