in December 2017. When the company leases out building space Julian's Leasing Co. started operations to lessees, Julian's charges rent in advance (the term on the space and the lessee). All of Julian's leasing contracts were signed as of December 31, 2017 and the lease term began on January 1, 2018 of the rent collected in advance varies depending is taxable. For financial reporting purposes, the income For tax purposes, the cash received in advance will not be recognized until earned. The enacted tax rate is tax rate for 2020 and 2021 is 35%, 40% for 2017, 2018, and 2019. The enacted Pretax accounting income is $700,000 for each The following collections were made as of 12/31/17. The table lists out the term of the leases. Revenue lease. for financial statement purposes will be recognized equally over the term of each Cash Collected at 12/31/17 for Entire Term of Lease $60,000 Term of the Lease Rental Agreement # Rental Agreement 1 Rental Agreement 2 Rental Agreement 3 Rental Agreement 4 Total 1 year (1/1/18-12/31/18) 2 years (1/1/18-12/31/19) 3 years (1/1/18-12/31/20) 4 years (1/1/18-12/31/21) $180,000 240 Requirement 1: Prepare a table (e.g. Illustration 16-4) showing the calculation of taxable income for each year, and the temporary difference that either originates or reverses each year as well. Requirement 2: Prepare journal entries to record income tax expense at the end of 2017, 2018, 2019, 2020, and 2021. Show your work. You may set up a schedule (e.g. Illustration 16-11) to calculate your income tax payable, income tax expense, and change needed in the deferred tax account. Remember that the income tax rate changes in 2020. You may need to attach additional paper with your work