Ivanhoe Corporation purchased equipment very late in $2023.$ Based on generous capital cost allowance rates provided in the Income

Tax Act, Ivanhoe claimed CCA on its $2023$ tax retum but did not record any depreciation because the equipment was being tested.

This temporary difference will reverse and cause taxable amounts of $$29,700$ in $2024,$$$39,600$ in $2025,$ and $$49,500$ in $2026.$

Ivanhoe's accounting income for $2023$ is $$251,600$ and $$223,600$ in each of $2024$ and $2025,$ and the tax rate for $2023,2024$ and $2025$

is $30\%.$ There are no deferred tax accounts at the beginning of $2023.$ Ivanhoe Corporation was informed on December $31,2024$ that

the enacted rate for $2025$ and subsequent years is $25\%.($c$)$

Your answer is partially correct.

Prepare the joumal entries to record income taxes for $2024$ and $2025.($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. Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Current T$2$x Expense

Income Tax Payable

$($To record current tax expense$)$

Deferred Tax Llability

Deferred T$2$x Benefit

$($To record deferred tax benefit$)$

Current Tax Expense

Income Tax Payable

$($To record current tax expense$)$

Deferred T$2$x Llabillty

Deferred T$2$x Benefit

$($To record deferred tax benefit$)$

Debit

Credit

$2024vv$

Current T$2$x Expense

Income Tax Payable

$($To record current tax expense$)$

Deferred T$2$x Llability

Deferred T$2$x Benefit

$($To record deferred tax benefit$)$

$2025vv$

Current T$2$x Expense

Income Tax Pryable

$($To record current tax expense$)$

Deferred Tax Llabillty

Deferred T$2$x Benefit

$($To record deferred tax benefit$)$