TSO, Inc., began operations on January 2, Year 10. For the year ended December 31, Year 10, TSO had pretax financial income of $200,000. TSO's enacted tax rate for Year 10 and future years is 40%.

Differences between amounts shown on TSO's Year 10 income statement and its tax return are listed below.

1. Depreciation equals $75,000 for tax purposes and $50,000 for financial statement purposes.
2. TSO received interest of $6,000 from its investment in tax-exempt municipal bonds.
3. Accrual basis sales equal $125,000. Using the installment sales method for tax purposes, TSO recorded $75,000 in sales. Under this method, sales are recognized for tax purposes when cash is collected.

From the provided information, prepare the journal entry to record TSO's income taxes for Year 10.

To prepare each required journal entry:

• Click on a cell in the Account Name column and select from the option list the appropriate account. An account may be used once, more than once, or not at all.
• Enter the corresponding debit or credit amount in the associated column.
• Round all amounts to the nearest whole number.
• Not all rows in the table might be needed to complete each journal entry.
• If no journal entry is needed, check the “No entry required” box at the top of the table as your response.