Pronghom Inc's only temporary difference at the beginning and end of $2019$ is caused by a $$3,090,000$ deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable $($only one$-$half of which is classified as a current asset$)$ is due in equal installments in $2020$ and $2021.$ The related deferred tax liability at the beginning of the year is $$1,236,000.$ In the third quarter of $2019,$ a new tax rate of $20\%$ is enacted into law and is scheduled to become effective for $2021.$ Taxable income for $2019$ is $$5,150,000.$ and taxable income is expected in all future years.

$($a$)$

Your answer is correct.

Determine the amount reported as a deferred tax liability at the end of $2019.$

Deferred tax liability $ $$

eTextbook and Media

List of Accounts

Attempts: $1$ of $3$ used

$($b$)$

Your answer is correct.

Prepare the journal entry necessary to adjust the deferred tax liability when the new tax rate is enacted into law. $($Credit account tities are automatically indented when amount is entered. Do not indert manually If no entry is required, select $"$Mo Entry for the account tities and enter Ofor the amounts$)$

Account Titles and Explanation

Debit

Credit

Deferred Taxliability

$309000$

Income Tax Eypense $$

$$

$$

eTextbook and Media

List of Accounts

Attempts: $1$ of $3$ used

$($c$)$

Draft the income tax expense portion of the income statement for $2019.$ Begin with the line "Income before income taxes" Assume no permanent differences exist. $($Enter negative amounts using either a negative sign preceding the number as: $45$ or parentheseseg. $(45)$