$9(10$ POINTS$)$ Hunt Co$.$ at the end of $2025,$ its first year of operations, prepared a

reconciliation between pretax financial income and taxable income as follows:

Pretax financial income

$ $950,000$

Estimated warranty expenses deductible for taxes when paid$1,200,000$

Extra depreciation

$((1,950,000))/($$$2000,000)$

Taxable income

Estimated warranty expense of $$800,000$ will be deductible in $2026,$ $$300,000$ in $2027,$

and $$100,000$ in $2028$ The use of the depreciable assets will result in taxable amounts of

$$650,000$ in each of the next three years.

Instructions

$($a$)$ Prepare a table of future taxable and deductible amounts.

$($b$)$ Prepare the journal entry to record income tax expense, deferred income taxes, and

income taxes payable for $2025,$ assuming an income tax rate of $40\%$ for all years.