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The pretax financial income of Ivanhoe Company differs from its taxable income throughout each of 4 years as follows. Pretax financial income for each year includes a nondeductible expense of $30,600 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2025. Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 20% was not enacted until the beginning of 2026. (List all debit entries before credit entries. Credit occount 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. Record journal entries in the order presented in the problem.) (To record the adjustment for the decrease in the enacted tax rate.) Income Tax Expense 74520 Deferted Tax Liability 28920 Income Tax Payable (To record income taxes for 2026.) 2027 Income Tax Expense 75720 Deferred Taxliability Income Tax Payable 47800 2028 Income Tax Expense Deferred Tax Liability Income Tax Paryable 47800 Prepare the income statement for 2026, beginning with income before income taxes. (Enter negative amounts using either a negative sign preceding the number es. -45 or parentheses es. (45))

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