At the end of 2013, its first year of operations, Slater Company reported a book value for its depreciable assets of $40,000 for financial reporting purposes and $33,000 for income tax purposes. Slater earned taxable income of $97,000 during 2013. The company is subject to a 30% income tax rate, and no change has been enacted for future years. The depreciation was the only temporary difference between taxable income and pretax financial income.

Required:

1. Prepare Slater's income tax journal entry at the end of 2013.

2. Show how the deferred taxes would be reported on Slater's December 31, 2013, balance sheet.