Crane inc, only temporary difference at the beginning and end of 2024, is caused by 3.39 million deferred gain for tax purposes for an installment sale of a plant asset, and the related (only one-half of which is classified as a current asset) is due in equal installments of 2025 and 2026. The related tax liability at the beginning of the year is 1017000. In the third quarter of 2024, a new tax rate of 20% will be enacted into law and is scheduled to become effective for 2026. Taxable income for 2024 is 5,650,000, and taxable income is expected in all future years.

1.Calculate deferred tax liability

2. Prepare Jounral entry to adjust the deferred tax liability when the new tax rate is enacted into law.