2: Deferred Income Taxes Baker Company has the following information relating to their income taxes for a three-year period: Year 1 Year 2 Year 3 GAAP Net Income 1,000 1,000 1,100 Before Odd Items Non-Deductible 15 20 10 Expenses (note 1) Depreciation 25 25 25 Expense (note 2) Rents Collected in 20 20 20 Advance (note 3) GAAP Net Income 1,010 1,015 1,105 Before Tax The tax rate is expected to be 20% for all years. . Note 1: These amounts represent expenses that will never be deductible on the tax retum Note 2 The company purchased an asset for $100 in Year 1. The entire amount was deductible on the tax retum in year 1. For GAAP, the company was using straight-ne over four years Note 3: The company collected revenue in advance in the amount of $80 in year 1. For GAAP purposes, the income will be allocated evenly over the next four years. The entire $80 is taxable in year 1 Required Prepare the journal entry to record income tax expense for year 2