Piper, Inc B) C) D)

Piper, Inc. reported a net deferred tax asset balance of $166,650 resulting from an estimated warranty expense accrual for book purposes. The total book-tax difference related to the bases of the estimated warranty liability is $505,000. The enacted statutory tax rate related to this balance changed from 33% to 28%, effective immediately. What journal entry will Piper need to make to adjust for this change in tax rates?

A) $$\begin{array} { | c | r | r | } \hline \text { Deferred Tax Asset } & 46,662 & \\\hline \text { Income Tax Payable } & & 46,662 \\\hline\end{array}$$
B) $$\begin{array} { | c | r | r | } \hline \text { Income Tax Expense } & 46,662 & \\\hline \text { Deferred Tax Asset } & & 46,662 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Income Tax Expense } & 25,250 & \\\hline \text { Deferred Tax Asset } & & 25,250 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Deferred Tax Asset } & 25,250 & \\\hline \text { Income Tax Payable } & & 25,250 \\\hline\end{array}$$