Farmer inc. began business on January 1, 2014. Its pretax financial income for the first 2 years was as follows: 2014 $ 240,000 2015 560,000 The following items caused the only differences between pretax financial income and taxable income. In 2014, the company collected $ 360,000 of rent; the other $ 240,000 will be earned equally over the 2015-2016 period. The full $ 360,000 was included in taxable income in 2014. The company plays $ 10,000 a year for life insurance on officers. In 2015, the company terminated a top executive and agreed to $90,000 of severance pay. The amount will be paid $ 30,000 per year for 2015-2017. The 2015 payment was made. The $ 90,000 was expensed in 2015. For tax purposes, the severance pay deductible as it is paid. The enacted tax rates existing at December 31, 2014 are: 2014 30% 2015 35 % 2016 40 % 2017 40 % Instructions Determine taxable income for 2014 and 2015. Prepare the journal entry to record income taxes for 2014. Prepare the journal entry to record income taxes for 2015