Current Attempt in Progress

The following information is available for Martinez Corporation for $2024($its first year of operations$).$

Excess of tax depreciation over book depreciation, $$37,400.$ This $$37,400$ difference will reverse equally over the years $2025-2028.$

Deferral, for book purposes, of $$18,400$ of rent received in advance. The rent will be recognized in $2025.$

Pretax financial income, $$308,000.$

Tax rate for all years, $20\%.$

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for $2025,$ assuming taxable income of $$295,000.($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Income Tax Expense

Deferred Tax Liability

Income Tax Payable

Deferred Tax Asset