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Q . Hunt C o began operations in 2 0 2 5 . Estimated warranty expense of $ 8 0 0 , 0 0 0

Q. Hunt C o began operations in 2025. Estimated warranty expense of $800,000 will be deductible
in 2026, $300,000 in 2027, and $100,000 in 2028. The use of the depreciable assets will result in
taxable amounts of $650,000 in each of the next three years. Pretax financial income was
$950,000.
Instructions
(a) Prepare a table of future taxable and deductible amounts.
(b) Prepare the journal entry to record income tax expense, deferred income taxes, and income
taxes payable for 2025, assuming an income tax rate of 20% for all years
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