Stone Co.began operations in Year 1and reported $225,000 in financial income for the year.Stone Co.'s Year 1tax depreciation exceeded its book depreciation by $25,000.Stone's tax rate for Year 1and years thereafter was 30%.In Year 2, book depreciation exceeded tax depreciation by $25,000. this is a reversal of the temporary difference between GAAP and tax accounting and results in the reversal of the deferred tax liability in Year 2.

Prepare the tax journal entries for Year 1 and Year 2.