Pharoah Inc.$\text{'}$s only temporary difference at the beginning and end of $2024$ is caused by a $$3\mathrm{.}18$ million deferred gain for tax purposes

for an installment sale of a plant asset, and the related receivable $($only one$-$half of which is classified as a current asset$)$ is due in equal

installments in $2025$ and $2026.$ The related deferred tax liability at the beginning of the year is $$954,000.$ In the third quarter of $2024,$

a new tax rate of $20\%$ is enacted into law and is scheduled to become effective for $2026.$ Taxable income for $2024$ is $$5,300,000,$ andDraft the income tax expense portion of the income statement for $2024.$ Begin with the line "Income before income taxes."

Assume no permanent differences exist. $($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or

parentheses e$.$g$.(45).)$

PHAROAH INC.$\text{'}$s

Income Statement $($Partial$)$

For the Year Ended December $31,2024$

$

taxable income is expected in all future years.