Sunland Company has the following two temporary differences between its income tax expense and income taxes payable. $($b$)$

Correct Answer $($Used$)$

Your answer is partially correct.

Indicate how deferred taxes will be reported on the $2027$ balance sheet. Sunland's product warranty is for $12$ months.

SUNLAND COMPANY

Balance Sheet $($Partial$)$

December $31,2027$

Non$-$Current Liabilities

eTextbook and Media

Solution

List of Accounts

$($c$)$

Your answer is partially correct.

Prepare the income tax expense section of the income statement for $2027,$ beginning with the line "Pretax financial income."

$($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

SUNLAND COMPANY

Income Statement $($Partial$)$

For the Year Ended December $31,2027$

Pretax Financial Income

Income Tax Expense

Current

$

longrightarrow

The income tax rate for all years is $20\%.$

$($a$)$

Your answer is correct.

Assuming there were no temporary differences prior to $2025,$ prepare the journal entry to record income tax expense, deferred

income taxes, and income taxes payable for $2025,2026,$ and $2027.($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 O for the amounts. Record journal entries in the order presented in the problem.$)$

Account Titles and Explanation

Debit

${2025}_{?}$

Income Tax Expense

Deferred Tax Asset

Deferred Tax Liability

Income Tax Payable

$4160$

Credit

$($