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

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

This temporary difference will reverse and cause taxable amounts of $$28,900$ in $2024,$ $$34,200$ in $2025,$ and $$46,600$ in $2026.$

Pharoah's accounting income for $2023$ is $$241,400$ and the tax rate is $30\%$ for all years. There are no deferred tax accounts at the

beginning of $2023.$

Screenshot $2023-10-30$ at $11$dots

Edited

$($i$)$

Prepare the journal entries to record income taxes for $2023.($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.$)$

Year Account Titles and Explanation

Debit

Credit

$2023$

$($To record current tax expense$)$

$2023$

$($To record deferred tax expense$)$

$($To record deferred tax expense$)$

Prepare the income tax expense section of the income statement for $2023,$ beginning with the line "Income before income tax."

$

Current Income Tax Benefit

Deferred Tax Asset

Deferred Tax Liability

Income before Income Tax

Income Tax Expense $-$ Current

Income Tax Expense $-$ Deferred

Net Income $/($Loss$)$