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On January 1, year 1$1,000,000 was collected in advance for rental of a building for a five-year period. The entire $1,000,000 was reported as taxable

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On January 1, year 1$1,000,000 was collected in advance for rental of a building for a five-year period. The entire $1,000,000 was reported as taxable income for the year. The enacted tax rate for this year is 44%. The enacted tax rate for all future years was 46%. As the result of a change in the tax law, the enacted tax rate for years all years after year 3 is 45%. Make the journal entry to record income tax expense at December 31 , year 2 , assuming income tax payable is $1,749,000. SHOW COMPUTATIONS

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