E$18\mathrm{.}5($LO $1,2)($Two Temporary Differences, One Rate, Beginning Deferred Taxes$)$ The following facts relate to Krung Thep Corporation.

$1.$ Deferred tax liability, January $1,2025,$ $$20,000.$

$2.$ Deferred tax asset, January $1,2025,$ $$0.$

$3.$ Taxable income for $2025,$ $ $95,000.$

$4.$ Pretax financial income for $2025,$ $ $200,000.$

$5.$ Cumulative temporary difference at December $31,2025,$ giving rise to future taxable amounts, $ $240,000.$

$6.$ Cumulative temporary difference at December $31,2025,$ giving rise to future deductible amounts, $ $35,000.$

$7.$ Tax rate for all years, $20\%.$

$8.$ The company is expected to operate profitably in the future.

Instructions

a$.$ Compute income taxes payable for $2025.$

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

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