Frederick Corporation had GAAP income before taxes of $750,000 in 2018. At 1-1-18, the companys basis in its fixed assets (i.e., the book value of its fixed assets) for GAAP purposes was $1,200,000 but for tax purposes was only $1,000,000. The difference resulted from the use of straight-line depreciation for GAAP and accelerated depreciation for taxes. The GAAP depreciation for 2018 was $60,000 less than the depreciation for tax purposes. The total difference will reverse in the following years as follows:

2019--$40,000

2020--$80,000

2021--$140,000

Frederick also recognizes installment sales for GAAP purposes when the sale is made but only recognizes taxable income for these sales as they are collected. At 1-1-2018, Fredericks installment sales receivable balance was $1,300,000. This amount is equal to the cumulative excess of GAAP gross profit from installment sales in previous years (through the end of 2017) over the gross profit recognized in taxable income from installment sales for the same years. In 2018, gross profit from installment sales included in GAAP income was $4,000,000, and gross profit included in taxable income from installment sales (i.e., collections) was $3,600,000. The total difference related to installment sales is expected to reverse as follows:

2019--$1,100,000

2020--$600,000

The income tax rate is 30% at 12-31-18 but the newly elected Republican president and Congress have openly committed to reducing the rate in 2019 so that the tax rate in 2020 and beyond will be only 25%. Prepare the journal entries for Frederick Corporation related to taxes for 2018. Clearly document any necessary calculations that support your entries.