Exercise $16-19($Algo$)$ Deferred taxes; change in tax rates; financial statement effects $[$LO$16-2,16-6]$

Bronson Industries reported a deferred tax liability of $$5\mathrm{.}75$ million for the year ended December $31,2023,$ related to a temporary

difference of $$23$ million. The tax rate was $25\%.$ The temporary difference is expected to reverse in $2025,$ at which time the deferred

tax liability will become payable. There are no other temporary differences in $2023-2025.$ Assume a new tax law is enacted in $2024$

that causes the tax rate to change from $25\%$ to $15\%$ beginning in $2025.($The rate remains $25\%$ for $2024$ taxes.$)$ Taxable income in

$2024$ is $$33$ million.

Required:

Prepare the appropriate journal entry to record Bronson's income tax expense in $2024.$

What effect, will enacting the change in the $2025$ tax rate, have on Bronson's $2024$ net income?

Complete this question by entering your answers in the tabs below.

Prepare the appropriate journal entry to record Bronson's income tax expense in $2024.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

millions rounded to $2$ decimal places $($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}50).$

Journal entry worksheet

$1$

Record $2024$ income taxes.

Note: Enter debits before credits.

Complete this question by entering your answers in the tabs below.

What effect, will enacting the change in the $2025$ tax rate, have on Bronson's $2024$ net income?

Note: Enter your answer in million rounded to $1$ decimal place$($i$.$e$.,5,500,000$ should be entered as $5\mathrm{.}5).$

Bronson's $2024$ net income will million