Ch 16 Exercise #1b Ajax Company began operations on January 1, 2024. For 2024, Ajax reported pretax accounting income of $175,000 (Ajax expects this income to continue through 2026). Ajax uses straight-line depreciation for financial reporting and accelerated depreciation for tax purposes. Below is a table summarizing these temporary differences: Depreciation Expense US GAAP Tax Code Reporting Deduction 2024 (actual) $25,000 $40,000 2025 (estimated) 25,000 20,000 2026 (estimated) 25,000 15,000 Total $75.000 $75.000 The tax rate in 2024 is 20%; this rate is expected to stay constant through 2026. Required: Complete the following table. Provide journal entries to record income tax expense and deferred tax liability. ($ in thousands) Pretax accounting income Depreciation expense--income statement Depreciation deduction--tax return Taxable income (tax return) Temporary difference Tax rates Deferred tax liability Temporary Difference Reverses Originates 2024 2025 2026 Total