Please show adequate work to substantiate your answers. PROBLEM I Frizell Co. at the end of 2007, its first year of operations, has the following items on its books. Pretax financial income Extra depreciation for taxes Estimated litigation expense Violation of laws(Hazardous waste) Rent received in advance $ 800,000 2,000,000 1,300,000 90,000 150,000 Use of the depreciable assets will result in taxable amounts of $500,000 in each of the next three years. The income tax rate is 30% for all years. Required: 1) Calculate taxable income for 2007. 2) Prepare one journal entry to record income tax expense and all related deferred taxes in 2007