Requirement:

$1.$ Determine the amounts necessary to record income taxes for $2025$ and prepare the appropriate journal entry.

$2.$ How should the deferred tax amounts be classified in the statement of financial position?

$3.$ Assume the enacted income tax law specifies that the tax rate will change from $20\%$ to $18\%$ in $2027.$ When scheduling the reversal of the depreciation difference, you were uncertain as to how to deal with the fact that the difference will continue to originate in $2027$ before reversing the next two years. Upon consulting PricewaterhouseCoopers' Comperio database, you found information on US GAAP: