II$.$ Accounting for Income Taxes

The accounting records of Lawton Incorporated show the following data for $2023.$ Lawton uses the accrual method of accounting for financial statements.

Life insurance expense on officers was $$27,000.$

Lawton's CEO was killed in a plane crash. Lawton received $$500,000$ proceeds from a life insurance policy carried on the CEO.

Lawton uses the double$-$declining balance method to calculate depreciation for financial statements and the straight$-$line method to calculate depreciation for taxes. Doubledeclining balance depreciation for $2023$ is $$216,000.$ Straight$-$line depreciation is $144,000.$

Interest revenue on State of New Jersey bonds totaled $$9,000.$

Expenses incurred in obtaining State of New Jersey bond income were $$1,000.$

Product warranties were estimated to be $$72,000$ in $2023.$ Actual repair and labor costs related to the warranties in $2023$ were $$18,000.$ The remainder is estimated to be paid evenly over the next two years.

Fines incurred for pollution violations were $$20,000.$

On November $1,2023,$ Lawton paid $$12,000$ for two years' offsite document storage.

Pretax financial income was $$1,500,000.$ The enacted tax rate is $22\%$ for $2023$ and $20\%$ for all future years.

Instructions:

a$.$ Compute taxable income and income taxes payable for $2023.$

b$.$ Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for $2023.$