Red Lantern Corp. reported a net deferred tax asset balance of $247,000 resulting from an estimated warranty expense accrual for book purposes. The enacted statutory tax rate related to this balance changed from 38% to 32%, effective immediately. Prepare the necessary journal entry to account for this change in tax rates if Red Lantern is an IFRS reporter.

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The Answer of Red Lantern Corp. reported a net deferred tax asset balance of $247,000 resulting from an estimated warranty expense accrual for book purposes. The enacted statutory tax rate related to this balance changed from 38% to 32%, effective immediately. Prepare the necessary journal entry to account for this change in tax rates if Red Lantern is an IFRS reporter.