Blossom Company, which began operations at the beginning of $2023,$ produces various products on a contract basis. Each contract

generates a gross profit of $$84,000.$ Some of Blossom's contracts provide for the customer to pay on an installment basis. Under these

contracts, Blossom collects one$-$fifth of the contract revenue in each of the following $4$ years. For financial reporting purposes, the

company recognizes gross profit in the year of completion $($accrual basis$).$ For tax purposes, Blossom recognizes gross profit in the year

cash is collected $($installment basis$).$

Presented below is information related to Blossom's operations for $2025$:

In $2025,$ the company completed seven contracts that allow for the customer to pay on an installment basis. Blossom

recognized the related gross profit of $$585,000$ for financial reporting purposes. It reported only $$120,000$ of gross profit on

installment sales on the $2025$ tax return. The company expects future collections on the related installment receivables to

result in taxable amounts of $$120,000$ in each of the next $4$ years.

In $2025,$ nontaxable municipal bond interest revenue was $$30,000.$

During $2025,$ nondeductible fines and penalties of $$28,000$ were paid.

Pretax financial income for $2025$ amounts to $$500,000.$

Tax rates $($enacted before the end of $2025)$ are $30\%$ for $2025$ and $20\%$ for $2026$ and later.

The accounting period is the calendar year.

The company is expected to have taxable income in all future years.

The company has no deferred tax assets or liabilities at the end of $2024.$

$($a$)$

Your answer is partially correct.

Prepare the journal entry to record income taxes for $2025.($List all debit entries before credit entries. Credit account titles are

automatically indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles

and enter $0$ for the amounts.$)$