Eason Company began operations on January 1, 2007, and reported net income of \(\$ 260,000\) during the year. Eason had a taxable income of \(\$ 350,000\) for 2007 . The difference between the reported net income and taxable income will reverse in 2008. The reported net income for 2008 was \(\$ 405,000\). There were no other temporary differences. The tax rate is \(35 \%\) for both years. Prepare the journal entries to record the tax expense, deferred taxes, and taxes payable for 2007 and 2008, respectively.

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