Marigold Corporation began operations in $2025$ and reported pretax financial income of $$208,000$ for the year. Marigold$$s tax depreciation exceeded its book depreciation by $$36,000.$ Marigold$$s tax rate for $2025$ and years thereafter is $40\%.$ Assume this is the only difference between Marigold$$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

enter an account title

enter a debit amount

$83200$

Correct answer

enter a credit amount

Correct answer

enter an account title

enter a debit amount

enter a credit amount

Incorrect answer

enter an account title

Deferred tax liability

Correct answer

enter a debit amount

Incorrect answer

enter a credit amount

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

Deferred tax liability should be classified as a select a balance sheet item

current asset

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