Question: At the end of 2016, Sentry Company reported a deferred tax liability of $ 6,120 based on an income tax rate of 30%. On January

At the end of 2016, Sentry Company reported a deferred tax liability of $ 6,120 based on an income tax rate of 30%. On January 2, 2017, Congress changed the income tax rate to 35%.
Required:
1. Calculate the amount of the adjustment to Sentry’s 2016 year end deferred tax liability.
2. Prepare the journal entry to correct Sentry’s deferred tax liability.

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