Hunter's unadjusted trial balance dated December 31, 2015, reports Income Taxes Expense of $70,000, and Income Taxes Payable of $20,000. The company's accountant estimates that income taxes expense for the entire year ended December 31, 2015, is $85,000.
a. Prepare the necessary adjusting entry for income taxes expense on December 31, 2015.
b. Determine the amount of income taxes payable reported in the balance sheet dated December 31, 2015.