E$18\mathrm{.}3($LO $1,2)($One Temporary Difference, Future Taxable Amounts, One Rate, Beginning Deferred Taxes$)$ Bandung Corporation began $2025$ with a $$46,000$ balance in the Deferred Tax Liability account. At the end of $2025,$ the related cumulative temporary difference amounts to $$350,000,$ and it will reverse evenly over the next $2$ years. Pretax accounting income for $2025$ is $$525,000,$ the tax rate for all years is $20\%,$ and taxable income for $2025$ is $$405,000.$

Instructions

Compute income taxes payable for $2025.$

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

Prepare the income tax expense section of the income statement for $2025$ beginning with the line $$Income before income taxes.$$