Gannon Enterprises provided the following information regarding book-tax differences for its first year of operations. Installment sales are a normal part of Gannon's operations. The depreciation expense is related to a building costing $1,500,000. Income before including any of the book-tax differences above is $925,000. Deferred tax assets are expected to be fully realized and, as a result, no allowance account is needed. Gannon is subject to a 40% income tax rate. Requirement: Prepare the journal entry(ies) necessary to record the effects of a tax-rate reduction from 40% to 34% effective the beginning of year 2. Installment sales: income recognized- GAAP $514,000 TAX $104,000 2-year warranty Costs: Warranty expense- GAAP $67,000 TAX $48,000 Depreciation expense- GAAP $88,000 TAX $138,000