Farmer Inc. began business on January 1, 2018. Its pretax financial income for the first 2 years was as follows: 2018 $240,000 2019 560,000 The following items caused the only differences between pretax financial income and taxable income. 1. In 2018, the company collected $420,000 of rent; of this amount, $140,000 was earned in 2018; the other $280,000 will be earned equally over the 2019-2 020 period. The full $420,000 was included in taxable income in 2018. 2. In 2019, the company terminated a top executive and agreed to $90,000 of severance pay. The amount will be paid $30,000 per year for 2019-2021. The 20 19 payment was made. The $90,000 was expensed in 2019. For tax purposes, the severance pay is deductible as it is paid. The enacted tax rates existing at December 31, 2018 and 2019 were 30 percent: Required: 1. Determine taxable income for 2018 and 2019. 2. Prepare the journal entry to record income taxes for 2018 and 2019