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 recognized gross profit in the year of completion $($accrual basis$).$ For tax purposes, blossom recognized gross profit in the year cash is collected $($installment basis$).$

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

$1.$ 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.

$2.$ In $2025,$ nontaxable municipal bond interest revenue was $$30,000.$

$3.$ During $2025,$ nondeductible fines and penalties of $$28,000$ were paid.

$4.$ Pretax financial income for $2025$ amounts to $$500,000.$

$5.$ Tax rates $($enacted before the end of $2025)$ are $30\%$ for $2025$ and $20\%$ for $2026$ and later.

$6.$ The accounting period is the calendar year.

$7.$ The company is expected to have taxable income in all future years.

$8.$ The company has no deferred tax assets or liabilities at the end of $2024.$

$($a$)$ 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.$)$

$($b$2)$ Indicate, starting with the line $$Income before income taxes$,$ how income taxes are reported on the income statement. What is Blossom$$s effective tax rate?