In its first year of operations, Martha Enterprises Corp. reported the following information: 1. Income before income taxes was $620,000 2. The company acquired capital assets costing $1,800,000; depreciation was $120,000 and CCA was $90,000 3. The company recorded an expense of $125,000 for the one-year warranty on the companys products; cash disbursements amounted to $77,000 4. The company incurred development costs of $75,000 that met the criteria for capitalization for accounting purposes. Development work was still ongoing at year-end. These costs could be immediately deducted for tax purposes. 5. The company made a political contribution of $20,000 and expensed this for accounting purposes 6. The income tax rate was 28% and the year 2 tax rate was enacted, at 30% In the second year, the company reported the following: 1. Earnings before income tax were $1,600,000 2. Depreciation was $120,000; CCA was $260,000 3. The estimated warranty costs were $200,000, while cash expenditure was $205,000 4. Additional development costs of $150,000 were incurred to complete the project. For accounting purposes, amortization of $38,000 was recorded. 5. Golf club memberships for top executives cost $25,000; this was expensed for accounting purposes as a marketing expense

Required:

Prepare the journal entries to record income tax expense for the first and second years of operation