Red Fox recorded profit before tax of $65,000 in 2022 and $60,000 in 2021. One revenue amount of $5,000 was correctly included in the 2021 income statement and was also correctly reported on the 2022 income tax return. This is the only difference between accounting income and taxable income. RGC pays taxes at the rate of 30%.

Prepare the journal entries to record taxes for 2021 and 2022. What is the balance in the deferred tax asset/liability account at the end of 2022? Why does this balance make sense to you?