Q$.$ Hunt $C$ o began operations in $2025.$ Estimated warranty expense of $$800,000$ will be deductible

in $2026,$ $$300,000$ in $2027,$ and $$100,000$ in $2028.$ The use of the depreciable assets will result in

taxable amounts of $$650,000$ in each of the next three years. Pretax financial income was

$$950,000.$

Instructions

$($a$)$ Prepare a table of future taxable and deductible amounts.

$($b$)$ Prepare the journal entry to record income tax expense, deferred income taxes, and income

taxes payable for $2025,$ assuming an income tax rate of $20\%$ for all years