At December $31,2025,$ Pronghorn Corporation had a deferred tax liability of $$353,600,$ resulting from future taxable amounts of $$2,080,000$ and an enacted tax rate of $17\%.$ In May $2026,$ a new income tax act is signed into law that raises the tax rate to $20\%$ for $2026$ and future years.

Prepare the journal entry for Pronghorn to adjust the deferred tax liability. $($List debit entry before credit entry. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

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eTextbook and Media

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