At the end of Year $1,$ its first year of operations, Slater Company reported a book value for its depreciable assets of $$40,000$ for financial reporting purposes and $$33,000$ for income tax purposes. Slater earned taxable income of $$97,000$ during Year $1.$ The company is subject to a $30\%$ income tax rate, and no change has been enacted for future years. The depreciation was the only temporary difference between taxable income and pretax financial income.

Required:

Prepare Slater's income tax journal entry at the end of Year $1.$

Show how the deferred taxes would be reported on Slater's December $31,$ Year $1,$ balance sheet.