The Jets company recorded a deffered tax liability in the amount of $18,750 on December 2020 due to the book value of equipment exceeding the tax basis of equipment by $75,000. The difference will reverse equally over the next three years. In late 2020 the enacted tax rate increased to 42.5% beginning of 2022. Determine the income tax rate that is the enacted rate for 2020. What journal entry should the Jets record to adjust the deferred tax liability, if any?

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