Faux Inc. Provided you with the following information: Year 2012

Accounting Income $1,500,000 Tax Rate 35% Warranty Expense $100,000 Warranty paid $0

Year 2013 Accounting Income $900,000 Tax Rate 40% (not enacted until 2014) Warranty Expense $0 Warranty Paid $0

Journal Entry Record Income tax for 2012 Record Income tax for 2013