Assume that Cunningham's $2025$ pretax accounting income is $$55,600$ and that Cunningham reports $$25,000$ more depreciation expense for tax purposes

than it shows in the accounting records, expected to reverse in $2027.$ Cunningham estimates that warranty costs associated with sales in $2025$ will be

$$30,000$; Cunningham incurred another $$28,000$ in warranty claims satisfied in $2025.$ Cunningham's tax$-$free municipal bond earned another $$14,000$ in $2025.$

A new tax law is enacted in $2025,$ increasing the tax rate from $21\%$ in $2025$ to $24\%$ in $2026$ and $25\%$ in $2027$ and thereafter.

d$.$ Prepare the journal entry necessary to record income taxes at the end of $2025.$

e$.$ What will Cunningham report in the tax section of its $2025$ income statement?