Sheridan Company reports pretax financial income of $$73,600$ for $2025.$ The following items cause taxable income to be different than pretax financial income.

Depreciation on the tax return is greater than depreciation on the income statement by $$17,600.$

Rent collected on the tax return is greater than rent recognized on the income statement by $$23,600.$

Fines for pollution appear as an expense of $$10,300$ on the income statement.

Sheridan's tax rate is $40\%$ for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of $2025.$

$($a$)$

Your answer is correct.

Compute taxable income and income taxes payable for $2025.$

Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for $2025.($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit