Record the following transactions for AT&T Inc. for the month of July 2025 and calculate the income tax expense:

• Jul 1: Received $400,000 in cash from the issuance of bonds payable.
• Jul 5: Purchased inventory worth $200,000 on credit.
• Jul 10: Paid $80,000 in cash for advertising expenses.
• Jul 15: Sold merchandise for $250,000 in cash.
• Jul 20: Paid $40,000 in cash for office rent.
• Jul 25: Received utility bills totaling $30,000, payable next month.
• Jul 31: Collected $180,000 in cash from customers for services provided.

Tax Rate: 25%