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Waterway Ltd. has one temporary difference at the beginning of 2021 of 570,000. The deferred...

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Accounting

Waterway Ltd. has one temporary difference at the beginning of 2021 of 570,000. The deferred tax liability established for this amount is 178,000, based on a tax rate of 30%. The temporary difference will provide the following taxable amounts: 114,000 in 2022, 228,000 in 2023, and 228,000 in 2024. If a new tax rate for 2024 of 20% is enacted into law at the end of 2021, what is the journal entry necessary in 2021 (if any) to adjust deferred taxes?

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