In its first year of operations, Martha Enterprises Corp. reported the following information: ed a. Income before income taxes was $600,000 b. The company acquired capital assets costing $2,000,000; depreciation was $136,000, and CCA was $100,000 c. The company recorded an expense of $135,000 for the one-year warranty on the company's products; cash disbursements amounted to $75,000. d. The company incurred development costs of $73,000 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. e. The company made a political contribution of $26,000 and expensed this for accounting purposes. f. 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: a. Earnings before income tax were $1,660,000. b. Depreciation was $136,000; CCA was $320,000. c. The estimated warranty costs were $230,000, while the cash expenditure was $265,000. d. Additional development costs of $180,000 were incurred to complete the project. For accounting purposes, amortization of $44,000 was recorded. e. Golf club memberships for top executives cost $31,000; this was expensed for accounting purposes as a marketing expense. Required: 1. Prepare the journal entries to record income tax expense for the first and second years of operation. (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet 1 2 > Record the income tax expense for the first year of operation. Journal entry worksheet Record the income tax expense for the second year of operation. Note: Enter debits before credits. Account Title Transaction Year 2 Debit Credit