Southern Atlantic Distributors began operations in January 2024 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2024, 30% in 2025, and 20% in 2026. Pretax accounting income for 2024 was $260,000, which includes interest revenue of $28,000 from municipal governmental bonds. The enacted tax rate is 25%.

Assuming no differences between accounting income and taxable income other than those described above:

Required:

1. Complete the following table and prepare the journal entry to record income taxes in 2024.
2. What is Southern Atlantics 2024 net income?

• Required 1 Calculation
• General Journal
• Required 2

Complete the following table to record income taxes in 2024. Note: Amounts to be deducted should be indicated with a minus sign. Enter your answers in whole dollars.

Description	Amount		Tax Rate		Tax	Recorded as:
Pretax accounting income	$260,000
Permanent difference
Income subject to taxation	$260,000			=
Temporary difference				=
Income taxable in current year	$260,000			=

• Record 2024 income taxes.
• What is Southern Atlantics 2024 net income? Note: Enter your answer in whole dollar.