2. Shemboys Company reports pre-tax financial income in 2017 of $250,000 and $300,000 in 2018 which does not take into consideration the following items:

Credit installment sales in 2017 of $60,000 which are expected to be collected in 2018;

b. Depreciation of R&D assets (3-year property) which were acquired on 1/1/2017 at a cost of $100,000. MACRS requires the following depreciation rates for 3-year property:

Year	%
1	33
2	45
3	15
4	7

For financial reporting purposes, Shemboy uses straight-line depreciation.

The tax rate in 2017 is 35% however Congress has enacted a tax revision for 2018 which reduces the rate to 30%.

Required:

Record the journal entries for income tax expense for the years 2017 and 2018.