The following facts relate to Krung Thep Corporation:

1. Deferred taxliability, January 1, 2015, $40,000
2. Deferred taxasset, January 1, 2015, $0
3. Taxable income for2015, $115,000
4. Pretax financialincome for 2015, $200,000
5. Cumulativetemporary difference at December 31, 2015, giving rise to future taxableamounts, $220,000
6. Cumulativetemporary difference at December 31, 2015, giving rise to futuredeductible amounts, $35, 000
7. Tax rate for allyears, 40%
8. The company isexpected to operate profitably in the future.

Instructions:

1. Compute income taxes payable for 2015.
2. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2015.

Prepare the income tax expense section of the income statement for 2015, beginning with the line "income before income taxes."