Sunland Company has the following two temporary differences between its income tax expense and income taxes payable. 2025 2026 2027 Pretax financial income $801.000 $937.000 $%03,000 Excess depreciation expense on tax return (28,800) (40,000) (10,300) Excess warranty expense in financial income 20,800 9,600 7,900 Taxable income $793,000 $906,600 $900,600 The income tax rate for all years is 20%. (a) v 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 O for the amounts. Record journal entries in the order presented in the problem.) Account Titles and Explanation Debit Credit Income Tax Expense 160200 Deferred Tax Asset 4150 Deferred Tax Liability 5760 Income Tax Payable 158600 2026 Income Tax Expense 187400 | Deferred Tax Asset 1920 | | | | Deferred Tax Liability | | 8000 | Income Tax Payable 181320 2027 Income Tax Expense 180600 | Deferred Tax Asset ' ' 1580 | | | Deferred Tax Liability 2060 Income Tax Pavable 180120 (b) Your Answer Correct Answer (Used) Your answer is partially correct. Indicate how deferred taxes will be reported on the 2027 balance sheet. Sunland's product warranty is for 12 months. SUNLAND COMPANY Balance Sheet (Partial) December 31, 2027 Non-Current Liabilities Deferred Tax Liability 8360 eTextbook and Media Solution List of Accounts Attempts: 3 of 3 used (c) Your answer is partially correct. Prepare the income tax expense section of the income statement for 2027, beginning with the line "Pretax financial income." (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) SUNLAND COMPANY Income Statement (Partial) For the Year Ended December 31, 2027 Pretax Financial Income 903000 ncome Tax Expense Current 180600 Deferred 480 i 181080 Net Income / (Loss) $ 721920