please show the calculation for (C)

The following information has been obtained for Pharoah Corporation. 1. Prior to 2025 , taxable income and pretax financial income were identical. 2. Pretax financial income is $1,728,000 in 2025 and $1,517,000 in 2026 . 3. On January 1,2025 , equipment costing $1,236,000 is purchased. It is to be depreciated on a straight-line basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 10A.) 4. Interest of $63,000 was earned on tax-exempt municipal obligations in 2026 . 5. Included in 2026 pretax financial income is a gain on discontinued operations of $201,000, which is fully taxable. 6. The tax rate is 20% for all periods. 7. Taxable income is expected in all future years. Your answer is correct. Compute taxable income and income taxes payable for 2026. Taxable income Income taxes payable Prepare the bottom portion of Pharoah's 2026 income statement, beginning with "Income from continuing operations before income taxes." (Enter negative amounts using elther a neggative sign preceding the number e.g. -45 or parentheses e.g. (45).) Prepare the journal entry to record 2026 income tax expense, income taxes payable, and deferred taxes. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is ientered. Da not indent manually. If ho entry is required, select "No Entry" for the account titles and enter o for the amounts.) The following information has been obtained for Pharoah Corporation. 1. Prior to 2025, taxable income and pretax financial income were identical. 2. Pretax financial income is $1,728,000 in 2025 and $1,517,000 in 2026 . 3. On January 1,2025, equipment costing $1,236,000 is purchased. It is to be depreciated on a straight-line basis ove for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purpo discussed in Appendix 10A.) 4. Interest of $63,000 was earned on tax-exempt municipal obligations in 2026. 5. Included in 2026 pretax financial income is a gain on discontinued operations of $201,000, which is fully taxable. 6. The tax rate is 20% for all periods. 7. Taxable income is expected in all future years. (a) Your answer is correct. Compute taxable income and income taxes payable for 2026. Taxable incorne $ Prepare the journal entry to record 2026 income tax expense, income taxes payable, and deferred taxes. (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 o for the amounts.) Prepare the bottom portion of Pharoah's 2026 income statement, beginning with "Income from continuing operations before Your answer is correct. Compute taxable income and income taxes payable for 2026. Taxable income Income taxes payable The following information has been obtained for Pharoah Corporation. 1. Prior to 2025, taxable income and pretax financial income were identical. 2. Pretax financial income is $1,728,000 in 2025 and $1,517,000 in 2026 . 3. On January 1,2025 , equipment costing $1,236,000 is purchased. It is to be depreciated on a straight-line basis over 5 years for tax purposes and over 8 years for financial reporting purposes. (Hint: Use the half-year convention for tax purposes, as discussed in Appendix 10A.) 4. Interest of $63,000 was earned on tax-exempt municipal obligations in 2026. 5. Included in 2026 pretax financial income is a gain on discontinued operations of $201.000, which is fully taxable. 6. The tax rate is 20% for all periods. 7. Taxable income is expected in all future years. Prepare the bottom portion of Pharoah's 2026 income statement, beginning with *Income from continuing operations before income taxes." (Enter negative omounts using either a negative sign preceding the number e.g. -45 or parentheses e. f. (45). Prepare the journal entry to record 2026 income tax expense, income taxes payable, and deferred taxes. (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 o for the amounts.)