$2.$ Red Admiral started operations early in $2023,$ making and selling kits to convert gas vehicles into fully electric vehicles. The following events occurred during their first year:

a$.$ Paid $$2,000$ for life insurance on the CEO.

b$.$ Purchased manufacturing equipment with a $10-$year life for $$450,000.$ RA uses straight$-$line depreciation for financial statement purposes and a $21\%$ rate for tax purposes.

c$.2023$ sales resulted in estimated product warranties of $$35,000.$ RA incurred $$3,500$ of warranty costs during $2023.$

d$.$ Earned $$250,000$ of income before income taxes, which is reported on their income statement. RA is subject to an income tax rate of $21\%.$

Required:

$$ Show calculations for Income tax expense for $2023.$

$$ Prepare a reconciliation between Income tax expense and Income tax payable.

$$ Identify which of the reconciling items will carry over into $2024.$ How will the treatment of these items differ in $2024$ from their treatment in $2023?$