Indicate how deferred taxes will be reported on the 2027 balance sheet. Sandhill's product warranty is for 12 months.

Sandhill Company has the following two temporary differences between its income tax expense and income taxes payable. The income tax rate for all years is 20%. (a) Your answer is correct. Assuming there were no temporary differences prior to 2025, prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2025, 2026, and 2027. (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. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit 2025 Income Tax Expense 172800 Deferred Tax Asset 4180 Income Tax Payable 170820 Deferred Tax Liability Income Tax Expense 189800 Deferred Tax Asset 2100 Income Tax Payable 183700 Deferred Tax Liability 8200 2027 Income Tax Expense 184000 Deferred Tax Asset 1660 Income Tax Payable Deferred Tax Liability 1920 eTextbook and Media List of Accounts * Your answer is partially correct. ndicate how deferred taxes will be reported on the 2027 balance sheet. Sandhill's product warranty is for 12 months