Grange, Inc., Inc. began operations in 2004. In 2012, the company became a publicly-held company. Zeke Bratkowski, controller, is preparing the annual comparative financial statements for 2021 &2022. He has gathered the following information pertaining to the accounting for income taxes. For the years ended December 31, 2021 & 2022, Grange, Inc., Inc. reported the following revenues and expenses. (No tax information is contained in these figures.) Revenues Cost of goods sold Operating expenses Other revenue . . Dec 31, 2021 $1,420,000 438,000 326,000 27,000 Dec. 31, 2022 $1,610,000 581,000 387,000 27,000 Tax rates enacted as of the beginning of 2019 are: 2019, 2020 & 2021, 40%, 2022, 39%, 2023,38% and 2024 & beyond 35%. Grange, Inc., Inc. uses the calendar year for both financial statement and income tax reporting. In 2021, one of the company's employees filed a sexual harassment suit. At the end of the year, the company attorneys stated that was probable that Grange, Inc. would lose, and they believed that the judgement would be approximately $80,000. The lawyers expect the case to be settled in November of 2023. In October of 2022, the suit was settled for $71,000. Grange, Inc., Inc. insures its key officers for death and accidents. The premium on this policy is $21,000 per year. The premium is expected to remain the same through 2025. During 2022, the company had received $90,000 check in settlement of a claim against the policy. Grange, Inc. collected $45,000 in rent on a building it owns. The rent is for a 5 year period beginning January 1, 2021. E. Clapton, production superintendent recently spoke with the plant manager concerning the status of some of the production equipment. He asked if a new system could be purchased. On January 8, 2021. Steve Miller, the plant manager, agreed with Clapton and purchased a new conveyor belt unit for $85,500 with no salvage value. Steve estimated the useful life to be 9 years. For financial purposes, the equipment was depreciated using the straight-line method and for tax purposes, the machine was depreciated using the following MACRS table Zyear equipment 14.29% 24.49% 17.49% 12.49% 8.93% 8.92% 8.93% 4.46% REQUIRED A. Identify each of the financial statement and income tax reporting differences listed above for Grange, Inc., Inc. as either temporary or permanent differences. Explain your answer. B. For the years ended December 31, 2021 & 2022, compute Grange, Inc., Inc. taxable income and income tax liability. C. For the years ended December 31, 2021 & 2022, calculate the deferred tax that relates to the differences identified in Requirement A. D. Prepare the journal entries required from the above information for Grange, Inc., Inc. for the years ended December 31, 2021 & 2022. E. Indicate the presentation of Deferred Tax and related items on the Balance Sheets for December 31, 2021 & 2022. NOTE YOU MUST SHOW ALL OF YOUR COMPUTATIONS.