Ch 16 Exercise 2 Enacted tax change Ajax Company began operations on January 1, 2027. For 2027, Ajax reported pretax accounting income of $165,000 (Ajax expects this income to continue through 2029). Ajax uses straight-line depreciation for financial reporting and accelerated depreciation for tax purposes. Below is a table summarizing these temporary differences: Depreciation Expense US GAAP Tax Code Reporting Deduction $ 35,000 $ 56,000 35,000 32,000 35,000 17,000 $105,000 $105,000 Tax Rate 20% 2027 (actual) 2028 (estimated) 2029 (estimated) Total 18% 15% The tax rate in 2027 is 20% but is scheduled to decrease each year as shown above. Required: Provide journal entries to record income tax expense and deferred tax liability based on the scheduled tax rates