The Matrix Company began operations as of the beginning of 2018. During 2018, Matrix reported GAAP (book) income before taxes of $789,500. For income tax purposes, depreciation expense was $150,000; for GAAP (book) purposes, depreciation expense was $74,000. Matrix accrued $900,000 of revenue for GAAP (book) purposes during 2018; $600,000 of the accrued revenue was taxable during 2018. Matrix earned interest of $79,800 from a municipal bond investment during 2018. Matrix's marginal income tax rate is 40%. Matrix did not make any income tax payments during 2018. Requirements: 1. Determine Matrix's taxable income for the year ended December 31, 2018. 2. Prepare the 2018 year-end journal entry to record income tax expense