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Blossom Tar and Gravel Ltd$.$ operates a road construction business. In its first year of operations, the company won a contract to build

a road for the municipality of Cochrane West. It is estimated that the project will be completed over a three$-$year period starting in

June $2023.$ Blossom uses the percentage$-$of$-$completion method of recognizing revenue on its long$-$term construction contracts. For

tax purposes, and in order to postpone the tax on such revenue for as long as possible, Blossom uses the completed$-$contract method

allowed by the CRA. For the second year of operations, Blossom made progress on the construction of the road for the municipality.

The account balances at December $31,2024,$ for the construction project and the accounting and tax balances of accounts related to

the equipment used for construction follow. $($The balances at December $31,2023,$ are also listed.$)$

Blossom's tax rate was $25\%$ in $2023$ and $2024.$ The enacted tax rate for $2025$ and subsequent years was reduced to $20\%$ on

September $15,2024.$ Income before income tax for the year ended December $31,2023,$ was $$195,100$ and for December $31,2024,$

was $$120,200.$ Blossom reports under IFRS.

$($a$)$

Prepare the journal entry to record the effect of the change in the enacted tax rate. $($List debit entry before credit entry. Credit

account titles are automatically indented when the 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. Round answers to $0$ decimal places, e$.$g$.5,275.)$

Date

Account Titles and Explanation

Debit

Credit

September

$15,2024$

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