Taxable income and pretax financial income would be identical for Huber Co$.$ except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared.

Taxable income

$2024$

$2025$

$2026$

Excess of revenues over expenses $($excluding two temporary differences$)$

$$160,000$

$$210,000$

$$90,000$

Installment gross profit collected

$8,000$

$8,000$

$8,000$

Expenditures for warranties

Taxable income

$(5,000)$

$(5,000)$

$(5,000)$

$$163,000$

$$213,000$

$$93,000$

Pretax financial income

$2024$

$2025$

$2026$

Excess of revenues over expenses $($excluding two temporary differences$)$

$$160,000$

$$210,000$

$$90,000$

Installment gross profit recognized

$24,000$

$-0-$

$-0-$

Estimated cost of warranties

$(15,000)$

$-0-$

Income before taxes

$$169,000$

$$210,000$

$$90,000$

The tax rates in effect are $2024,20\%$; $2025$ and $2026,25\%.$ All tax rates were enacted into law on January $1,2024.$ No deferred income taxes existed at the beginning of $2024.$ Taxable income is expected in all future years.

Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for $2024,2025,$ and $2026.$Taxable income and pretax financial income would be identical for Huber Co$.$ except for its treatments of gross profit on installment

sales and estimated costs of warranties. The following income computations have been prepared.

The tax rates in effect are $2024,20\%$; $2025$ and $2026,25\%.$ All tax rates were enacted into law on January $1,2024.$ No deferred

income taxes existed at the beginning of $2024.$ Taxable income is expected in all future years.

Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for $2024.2025,$ and $2026.$ Income Tax Expense

Deferred Tax Asset

Income Tax Payable

Deferred Tax Liability

$]$

Income Tax Expense

Deferred Tax Liability

Income Tax Payable

Deferred Tax Asset

$]$

Income Tax Expense

Deferred Tax Liability

$2000$

Income Tax Payable