The accounting income of Blossom Corporation and its taxable income for the years $2023$ to $2026$ are as follows:

The change in the tax rate from $25\%$ to $30\%$ was not enacted until early in $2024.$

Accounting income for each year includes an expense of $$44,000$ that will never be deductible for tax purposes. The remainder of the

difference between accounting income and taxable income in each period is due to one reversing difference for the depreciation of

property, plant, and equipment. No deferred taxes existed at the beginning of $2023.$The accounting income of Blossom Corporation and its taxable income for the years $2023$ to $2026$ are as follows:

The change in the tax rate from $25\%$ to $30\%$ was not enacted until early in $2024.$

Accounting income for each year includes an expense of $$44,000$ that will never be deductible for tax purposes. The remainder of the

difference between accounting income and taxable income in each period is due to one reversing difference for the depreciation of

property, plant, and equipment. No deferred taxes existed at the beginning of $2023.$Correct Answer $($Used$)$

Calculate the current and deferred tax expense or benefit for each of the four years. Also calculate the balance of the deferred tax

balance sheet account at the end of each fiscal year from $2023$ to $2026.($Show asset and benefit numbers as positive, and liability and

expense numbers as negative.$)$Prepare journal entries to record income taxes in all four years. $($List all debit entries before credit entries. Credit account titles are

automatically indented when the 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. Record journal entries the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit

Current Tax Expense

Income Tax Payable

$($To record current tax expense$)$

Deferred Tax Expense

Deferred Tax Liability

$($To record deferred tax expense$)$

Deferred Tax Liability

$($To record the adjustment for the increase in the

enacted tax rate$)($To record current tax expense$)$

Deferred Tax Liability

$($To record deferred tax expense$)$

$($To record current tax expense$)$

Deferred Tax Liability

$($To record deferred tax expense$)$

$($To record current tax expense$)($c$)$

Prepare the bottom of the income statement for $2024,$ beginning with the line "Income before income tax." $($Enter negative amounts

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

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