NovaSci, Inc. has a deferred tax asset account with a balance of $$255,000$ at the end of $2024$ due to a single cumulative temporary difference of $$850,000.$ At the end of $2025$ this same temporary difference has decreased to a cumulative amount of $$750,000.$ Taxable income for $2025$ is $$650,000.$ The tax rate is $20\%$ for all years. No valuation account related to the deferred tax asset is in existence at the end of $2024.$

$($a$)$ Record income tax expense, deferred income taxes, and income taxes payable for $2025,$ assuming that it is more likely than not th the deferred tax asset will be realized. $($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 O for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

Income Tax Expense

Deferred Tax Asset

Income Tax Payable

$($b$)$ Assuming that it is more likely than not that one$-$half of the deferred tax asset will not be realized, prepare the journal entry at the end of $2025$ to record the valuation account. $($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 O for the amounts. List debit entry before credit entry.$)$

Account Titles and Explanation

Debit

Credit

Income Tax Expense

Allowance to Reduce Deferred Tax Asset to Expected Rea