North Dakota Corporation began operations in January $2023$ and purchased a machine for $$10,000.$ North Dakota uses straight$-$line depreciation over a four$-$year period for financial reporting purposes. For tax purposes, the deduction is $60\%$ of cost in $2023,20\%$ in $2024,$ and $20\%$ in $2025.$ Pretax accounting income for $2023$ was $$140,000,$ which includes interest revenue of $$15,000$ from municipal bonds. The enacted tax rate is $30\%$ for all years. There are no other differences between accounting and taxable income.

Required:

Prepare a journal entry to record income taxes for the year $2023.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Note: Enter debits before credits.

At the end of the preceding year, World Industries had a deferred tax asset of $$11,500,000,$ attributable to its only temporary difference of $$46,000,000$ for estimated expenses. At the end of the current year, the temporary difference is $$41,000,000.$ At the beginning of the year there was no valuation account for the deferred tax asset. At year$-$end, World Industries now estimates that it is more likely than not that one$-$third of the deferred tax asset will never be realized. Taxable income is $$11,600,000$ for the current year and the tax rate is $25\%$ for all years.

Required:

Prepare journal entries to record World Industries' income tax expense for the current year.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Round your answers to nearest whole dollar amount.

$$

Journal entry worksheet

Record the income taxes

Record the valuation allowance for year end

$1$

$2$

Record the income taxes.