Q#1 The following information is for Harris Inc., first year of operations. The amounts are in millions of dollars. Accounting income for current year $102,000 On December 31st of the first year Harris made a rent payment to their landlord in the amount of $22,000. The payment represented 4 years advance payments of rent. Warranty expense for the year was $5,000 and cash paid for warranty claims totaled $1,000. Harris assumes any differences will reverse in the following year. Accounting income in Year 2 was $97,250. Warranty expense for Year 2 totaled $3,000 and cash paid for warranty claims totaled $4,000. Harris assumes any differences will reverse in the following year. The enacted tax rate for Year 1 and Year 2 was 21% and the enacted tax rate for all subsequent years is 27%. Required: 1. What is Taxable income in Year 1? 2. Prepare the Journal entry to record income tax expense for Year 1. 3. What is the amount of net income reported on the income statement for Year 1? 4. What is Taxable Income in Year 2? 5. Prepare the journal entry to record income tax expense for Year 2. 6. What is the amount net income reported on the income statement for Year 2?