In the current year, Madison Corporation had $$50,000$ of taxable income at a tax rate of $25\%.$ During the year, Madison began offering warranties on its products and has a warranty liability for financial reporting purposes of $$5,000$ at the end of the year. Warranty expenses are not deductible until paid for income tax purposes.

Required:

Prepare the journal entry to record Madison$$s income taxes at the end of the year.