P and S Corporations comprise an affiliated group that files separate tax returns. P and Shad no intercompany inventory sales before the current year (Year 1). P and S use the first-in, first-out (FIFO) inventory method. During Year 1, S sells 40,000 widgets to P, earning $7 per unit profit on the sale. P's inventory at the end of Year 1 includes 10,000 of these widgets. During Year 2, S sells 75,000 widgets to P, earning $7.50 per unit profit on the sale. P's inventory at the end of Year 2 includes 12,000 of these widgets. During Year 3, no intercompany inventory sales occur, and P sells all widgets in beginning inventory. P's and S's taxable income each year (including any profits from intercompany inventory sales) is $380,000 and $300,000, respectively. The corporate tax rate is 21%.

a. Prepare the journal entries to record federal income tax expense for each of Years 1, 2, and 3.

b. Assume that, instead of units of inventory, S sells to P shares of marketable securities, with the same profits as in Part a. Again, prepare the journal entries to record federal income tax expense for each of Years 1, 2, and 3.