Problem 2 (30 marks) During its first year of operations, Karol Corp. reported the following information: Income before income taxes for the year was $550,000 and the tax rate was 35%. Depreciation expense was $100,000 and CCA was $50,000. Warranty expense was reported at $20,000, while actual cash paid out was $10,000 $25,000 of expenses included in income were not deductible for tax purposes. No other items affected deferred tax amounts besides these transactions. Required: Prepare a worksheet for permanent and temporary differences and journal entries to record income tax expense for the year