uueyuale work to substantiate your answers. PROBLEM I Frizell Co. at the end of 2007, its first year of operations, has the following items on its books. Pretax financial income Extra depreciation for taxes Estimate Violation of laws (Hazardous waste) Rent received in advance 800,000 2,000,000 1,300,000 90,000 150,000 d litigation expense Use of the depreciable assets will result in taxable amounts of $500,000 in each of the next three years. The income tax rate is 30% for all years Required: 1) Calculate taxable income for 2007. 2) Prepare one journal entry to record income tax expense and all related deferred tax in 2007