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During $2025,$ Cumpuinc's first year of operations, the company reports pretax financial income at $$231,000.$ Cumpuinc's enacted tax rate is $40\%$ for $2025$ and $2026$ and $20\%$ for all later years. Cumpuinc expects to have taxable income in each of the next $5$ years. The effects on future tax returns of temporary differences existing at December $31,2025,$ are summarized below.

$\backslash$table$[[,$Future Years,$],[,2026,2027,2028,2029,2030,$Total$],[$Future taxable $($deductible$)$ amounts:,,,,,,$],[$Warranty costs,$$(20,000),$$$(60,000),$$$(25,000),,$$$(105,000),],[$Depreciation$,(20,000),12,000,12,000,12,000,12,000,28,000],[$Installment sales,$60,000,75,000,,,135,000,],[,,,,,,]]$

Complete the schedule below to compute deferred taxes at December $31,2025.($Enter negative amounts using either a negative sign preceding the number eg$.-45$ or parentheses e$.$g$.(45).)$

Complete the schedule below to compute deferred taxes at December $31,2025.($Enter negative amounts using either a negative sign preceding the number e$.$g$.-45$ or parentheses e$.$g$.(45).)$

Compute taxable income for $2025.$

Taxable income for $2025$

Prepare the journal entry to record income taxes payable, deferred taxes, and income tax expense for $2025.($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 $0$ for the amounts. List all debit entries before credit entries.$)$

Account Titles and Explanation

Debit

Credit

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