DEFERRED INCOME TAX. Jergens, Inc., follows the tax law when computing depreciation expense on its tax return and uses straight-line depreciation to compute the depreciation expense for its income statement. For 19x7 the following data are available:

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ITEM Income before taxes Tax rate INCOME TAX RETURN INCOME STATEMENT $826,000 .341 $1,039,000. .34 REQUIRED: 1. What is the amount of income taxes payable for 19x7? 2. What is the amount of income taxes expense for 19x7? 3. Prepare the journal entry to record income taxes for 19x7.