Frizell Co. at the end of 2007, its first year of operations, has the ollowving items on its books Pretax financial income Estimated litigation expense Unearned Rent Extra depreciation for taxes Illegal Fines $ 800,000 1,300,000 200,000 2,000,000 90,000 The estimated litigation expense of $1,300,000 will be deductible in 2008 when it is expected to be paid. Use of the depreciable assets will result in taxable amounts of $500,000 in each of the next four years. The income tax rate is 40% for all years. Required: 1) Calculate taxable income for 2007. 2) Prepare one journal entry to record income tax expense and all related deferred taxes in 2007