Oriole Co. at the end of 2021, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows:

Pretax financial income $390,000

Extra depreciation taken for tax purposes (1,002,000)

Estimated expenses deductible for taxes when paid 860,000

Taxable income $248,000

Use of the depreciable assets will result in taxable amounts of $334,000 in each of the next three years. The estimated litigation expenses of $860,000 will be deductible in 2024 when settlement is expected.

Prepare a schedule of future taxable and deductible amounts.

Prepare the journal entry to record income tax expense, deferred taxes, and income taxes payable for 2021, assuming a tax rate of 25% for all years.