7. Reyami Enterprises provided the following information regarding book-tax differences for its first year of operations: (Click the icon to view the book-tax differences.) Installment sales are a normal part of Reyami's operations. The depreciation expense is related to a building costing $1,400,000. Income before including any of the book-tax differences above is $945,000. Deferred tax assets are expected to be fully realized and, as a result, no allowance account is needed. Reyami is subject to a 40% income tax rate. Requirement Prepare the journal entry/entries necessary to record the effects of a tax-rate reduction from 40% to 34% effective the beginning of Year 2. (Record debits first, then credits. Exclude explanations from any journal entries.) Year 2 Account (1) Deferred Tax Liability (2) Income Tax Expense (3) Deferred Tax Asset 1: Data Table $ Source of Book-Tax Difference Installment Sales: Income recognized 2-year Warranty Costs: Warranty Expense Depreciation Expense GAAP 514,000 $ 70,000 82,000 Tax 120,000 46,000 134,000