Problem $3$:

The following information is available for ABC Corporation for $2024($its first year of operations$).$

Excess of tax depreciation over book depreciation, $$40,000.$ This $$40,000$ difference will reverse equally

over the years $2025-2028.$

Deferral, for book purposes, of $$20,000$ of rent received in advance. The rent will be recognized in $2025.$

Pretax financial income, $$300,000.$

Tax rate for all years, $20\%.$

Compute taxable income for $2024.$

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes

payable for $2024.$