For the following year, the company reports pretax nancial income of $28,489. The following items related to previous deferred tax items were adjusted during the year. Prepare the journal entry to record income tax expense for year 2. Assume a 35% tax rate. a. Balance of accounts receivable at end of year two is 10,852. The company estimates that 3% will be uncollectible. $350 of accounts were written off during the year. The company settled the lawsuit with its former employee paying a total of $15,000. The long-term construction job was completed during year two. No additional jobs are in progress at year end. No additional long-term assets were purchased during the year. Tax depreciation for year two on existing company assets is $14,886 for equipment and $3,197 for buildings. The company's rent tenant switched to paying for rent on a monthly basis after its year of prepaid rent was completed. Fair value of company equity investments was $9,102. No equity investments were bought or sold during the year