Question 2 The following data represent the differences between accounting and tax income for Seafood Imports Inc., whose pre-tax accounting income is $695,000 for the year ended December 31. The company's income tax rate is 45%. Additional information relevant to income taxes includes the following. a. Capital cost allowance of $270,000 exceeded accounting depreciation expense of $157,000 in the current year. b. Rents of $29,000, applicable to next year, had been collected in December and deferred for financial statement purposes but are taxable in the year received. c. In a previous year, the company established a provision for product warranty expense. A summary of the current year's transactions appears below: ii. Warranty Expense for the year 42,500 iii. Payments made to fulfill product warranties 35,000 d. Insurance expense to cover the company's executive officers was $7,500 for the year. Required: 1. Calculate Taxable income. 2. Prepare all journal entries to record income taxes for Seafood Imports