5. ABC Company began operations in 2025 and has provided the following information. 1. Pretax financial income for 2025 is $200,000. 2. The tax rate enacted for 2025 and future years is 25%. 3. Differences between the 2025 income statement and tax return are listed below: a. Warranty expense accrued for financial reporting purposes amounts to $10,000. Warranty deductions per the tax return amount to $8,000. b. Gross profit on construction contracts for tax purposes amount to $10,000. Gross profit on construction contracts using the percentage of completion method for books amounts to $50,000. c. Depreciation of property, plant and equipment for financial reporting purposes amounts to $6,000. Depreciation of these assets amounts to $8,000 for the tax return. d. A $1,000 fine paid for violation of pollution was deducted in computing pretax financial income. e. Interest revenue on State of New York bonds totaled $1,000. a. What is the difference between a permanent and temporary difference? b. Compute taxable income for 2025 c. Compute the deferred taxes at December 31, 2025, that relate to the temporary difference described above. d. Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2025, assuming that there was a balance of $5,000 in a Deferred Tax Liability account at the end of 2024