E$8-14($Appendix $8$A$)$ Recording Deferred Income Tax: One Temporary Difference; Discussion of Management Strategy Los$-$S$1$

The comparative statement of earnings for Chung Corporation for fiscal years $2022$ and $2023$ provided the following summarized pretax data:

The expenses for $2023$ included an amount of $\backslash (\backslash$$ $30,000\backslash )$ that was deductible only on the $2022$ income tax return. The average income tax rate was $30$ percent. Taxable income shown in the tax returns was $\backslash (\backslash$$ $180,000\backslash )$ for $2022$ and $\backslash (\backslash$$ $270,000\backslash )$ for $2023.$

Required:

$1.$ For each year, compute $($a$)$ the income taxes payable and $($b$)$ the deferred income tax. Is the deferred income tax a liability or an asset? Explain.

$2.$ Prepare the joumal entry for each year to record the income taxes payable, the deferred income tax, and the income tax expense.

$3.$ Show the tax$-$related amounts that should be reported each year on the statement of earnings and the statement of financial position. Assume that income tax is paid on March $1$ of the next year.

$4.$ Why would management want to incur the cost of preparing separate tax and financial accounting reports to defer the payment of taxes?