the jets company recorded a deferred tax liability of $18,750 on december 31 of year 1, 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 year 1, the enacted tax rate increased to 42.5% beginning in year 3. a. determine the income tax rate that is the enacted rate for year 1. income tax rate for year 1: answer 25 % b. what journal entry should the jets record to adjust the deferred tax liability, if any, on december 31 of year 1?