Current Attempt in Progress

Vaughn Corporation began operations in $2025$ and reported pretax financial income of $$234,000$ for the year. Vaughn's tax

depreciation exceeded its book depreciation by $$32,000.$ Vaughn's tax rate for $2025$ and years thereafter is $40\%.$ Assume this is the

only difference between Vaughn's pretax financial income and taxable income.

Prepare the journal entry to record the income tax expense, deferred income taxes, and income taxes payable. $($List all debit entries

before credit entries. Credit account titles are automatically indented when 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.$)$

Account Titles and Explanation

Debit

Credit

Show how the deferred tax liability will be classified on the December $31,2025,$ balance sheet.

Deferred tax liability should be classified as a

eTextbook and Media

on the December $31,2025,$ balance sheet.

current asset

current liability

noncurrent asset

noncurrent liability