For its first year of operations, Evergreen Lawn Care Companys reconciliation of pretax accounting income to taxable income is as follows:

Pretax accounting income	$	300,000
Permanent difference		(15,000	)
		285,000
Temporary difference-depreciation		(20,000	)
Taxable income	$	265,000

Evergreens tax rate is 25%.

1. What should Evergreen report as income tax payable for its first year of operations?

2. What should Evergreen report as its deferred income tax liability as of the end of its first year of operations?

3. What should Evergreen report as its income tax expense for its first year of operations?

4. Prepare the Journal Entry to record Evergreens Income Tax Expense, Income Tax Payable and Deferred Tax Liability: