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  3. the current tax code provides for a tax rate of 21

The current tax code provides for a tax rate of 21%(ignore any corporate min tax...

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Accounting

The current tax code provides for a tax rate of 21%(ignore any corporate min tax possibility), Assume that Congress has just passed a change in the tax rate from 21% to 15% effective January 1,2025.
At December 31,2023 Wright Industries has only one item of deferred tax. There is a deferred tax asset in the amount of $21,000. There are no other temporary differences in the period 2023-2025. The book income before tax and the tax able income in 2024 are $500,000. There are no permanent differences between 2023-2025
Requirements:
1) Prepare the 2024 entry to record income tax expense. Show all supporting calculations.
2) What effect did the 2025 decrease in the tax rate have on the 2024 net income of Wright Industries. Show all supporting calculations.
3) What is the 2024 effective tax rate? Why isnt it 21%?
Explain and include supporting calculations.

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