E$19\mathrm{.}5($LO $1,2)($Two Temporary Differences, One Rate, Beginning Deferred Taxes$)$ The fol$-$

lowing facts relate to Krung Thep Corporation.

Deferred tax liability, January $1,2020,$$$20,000.$

Deferred tax asset, January $1,2020,$ $$0.$

Taxable income for $2020,$$$95,000.$

Pretax financial income for $2020,$$$200,000.$

Cumulative temporary difference at December $31,2020,$ giving rise to future tasable amounts.

$$240,000.$

Cumulative temporary difference at December $31,2020,$ giving rise to future deductible amounts,

$$35,000.$

Tax rate for all years, $20\%.$

The company is expected to operate profitably in the furure.

Instructions

a$.$ Compute income taxes payable for $2020.$

b$.$ Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes

payable for $2020.$

c$.$ Prepare the income tax expense section of the income statement for $2020,$ beginning with the line

"Income before income taxes."