1. The Freddy Mercury Company provided you with the following information: 2013 Net Income: $1,500,000 2014 Net Income: $900,000 2013 Tax rate: 40% 2014 Tax rate: 35% In addition, the only difference between accounting and tax are warranty costs accrued of $100,000 in 2013. No actual warranty expenses were incurred in 2013 or 2014. Prepare journal entries for 2013 and 2014 to record income tax expense.