Moby$$s end of year pretax financial$/$book income for $2023$ was $$718,000.$ Included in it was $$38,000$ in interest income on municipal bonds, warranty expense accrued for $$18,000($no warranty work was performed in $2023),$ a $$23,000$ fine for dumping hazardous waste, and depreciation expense of $$40,000.$ Depreciation for tax purposes was $$65,000.$ Moby$$s tax rate is $21\%.$

Instructions:

$10\mathrm{.}1$ Compute the taxable income for $2023.$

$10\mathrm{.}2$ Compute the deferred taxes on December $31,2023,$ that relates to the temporary differences described above.

$10\mathrm{.}3$ Prepare the journal entries to record income tax expense, deferred taxes, and income taxes payable for $2023.$

$10\mathrm{.}4$ Format the income tax expense section of the income statement, starting with $$income before income taxes$.$