In 2023, IRS Company reported pretax financial income of $260,000. IRS company paid rent in advance of $30,000 to Housing company. As a result, there is a deferral, for book purposes, of $30,000 of rent paid in advance. For book purposes, the rent expense will be recognized in 2024. The companys tax rate is 35%. 2023 is the companys first year of operations.

1. Compute taxable income for 2023.

2. Prepare the companys journal entry for 2023.