Elwood Ltd has the following deferred tax balances as at 30 June 2023: 

Deferred tax asset $1 000 000

Deferred tax liability $800 000

The above balances were calculated when the tax rate was 30 per cent. On 1 December 2023 the government raises the corporate tax rate to 35 per cent.

REQUIRED

Provide the journal entries to adjust the carry-forward balances of the deferred tax asset and deferred tax liability.