Deferred tax liability, January $1,2025,$$$33,000.$

Deferred tax asset, January $1,2025,$$$11,000.$

Taxable income for $2025,$$$115,500.$

Cumulative temporary difference at December $31,2025,$ giving rise to future taxable amounts, $$253,000.$

Cumulative temporary difference at December $31,2025,$ giving rise to future deductible amounts, $$104,500.$

Tax rate for all years, $20\%.$ No permanent differences exist.

The company is expected to operate profitably in the future.

$($a$).$

$($b$)$

Your answer is correct.

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for $2025.($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

Income Tax Expense

Deferred Tax Asset

Deferred Tax Liability

Prepare the income tax expense section of the income statement for $2025$ beginning with the line "Income before income taxes." $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

SANDHILL CORPORATION Income Statement $($Partial$)$

$

$

$

$=$