In its first year of operations, Lee Corporation reported the following information:

a. Income before income taxes was \(\$ 2,000,000\).

b. The company acquired capital assets costing \(\$ 1,800,000\); depreciation was \(\$ 300,000\) and CCA was \(\$ 180,000\).

c. The company recorded an expense of \(\$ 400,000\) for the one-year warranty on the company's products; cash disbursements amounted to \(\$ 160,000\).

d. The income tax rate was \(36 \%\).

In the second year, Lee reported the following:

a. Legislation was enacted that changed the tax rate to \(38 \%\).

b. Income before income tax was \(\$ 2,400,000\).

c. Depreciation was \(\$ 300,000 ;\) CCA was \(\$ 324,000\).

d. The estimated warranty costs were \(\$ 500,000\) while the cash expenditure was \(\$ 440,000\).

e. Entertainment expenses of \(\$ 50,000\) included on the statement of profit and loss were not deductible for tax purposes.

Required:

Prepare the journal entries to record income tax expense for the first and second years of operation.