Record the following transactions for Ford Motor Company for the month of January 2026 and calculate the income tax expense:

• Jan 1: Received $350,000 in cash from the issuance of bonds payable.
• Jan 5: Purchased inventory worth $180,000 on credit.
• Jan 10: Paid $75,000 in cash for advertising expenses.
• Jan 15: Sold merchandise for $220,000 in cash.
• Jan 20: Paid $30,000 in cash for office rent.
• Jan 25: Received utility bills totaling $28,000, payable next month.
• Jan 31: Collected $160,000 in cash from customers for services provided.

Tax Rate: 25%