Troy Ltd$.,$ at the end of $2023,$ its first year of operations, prepared a

reconciliation between pre$-$tax accounting income and taxable income as follows:

Pre$-$tax accounting income $....................................................$ $$300,000$

Excess CCA claimed for tax purposes $..................................(600,000)$

Estimated expenses deductible when paid $............................500,000$

Taxable income $.....................................................................$ $$200,000$

Use of the depreciable assets will result in taxable amounts of $$200,000$ in each

of the next three years. The estimated expenses of $$500,000$ will be deductible in

$2026$ when settlement is expected to be made.

The enacted tax rate is $25\%$ and is to increase to $30\%,$ starting in $2024.$

Instructions

a$)$ Prepare a schedule of the deferred taxable and deductible amounts.

b$)$ Prepare the required adjusting entries to record income taxes for $2023$