Wellington Construction Equipment Manufacturers engaged in an installment sale with one of its major customers. The firm negotiated the terms of the installment sale for a specialized piece of equipment, full payment is required within 3 years. We present information related to Wellington's first 3 years of operation: (Click the icon to view the data.) Read the requirements. Requirement a. Prepare the journal entries required to record the tax expense for all 3 years. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin with the journal entry required to record the tax expense for Year 1. Account Year 1 Data table Year 1 Year 2 Year 3 Account GAAP Tax GAAP Tax GAAP Tax Sales $ 14,000 $ 14,000 $ 12,700 $ 12,700 $ 11,500 $ 11,500 Next prepare the journal entry required to record the tax expense for Year 2. Account Year 2 Gross profit on installment sales Taxable portion of cash collected on installment sales $ 4,000 0 0 0 0 0 1,100 Operating expenses (400) (400) (1,200) 900 (1,200) 2,000 (1,600) (1,600) $ 17,600 S 11,500 $ 9,900 Income before tax Taxable income $ 14,700 $ 12,400 $ 11,900 Now prepare the journal entry required to record the tax expense for Year 3. Tax rate Tax payable × 40% * 40% × 40% $ 5.880 $ 4,960 $ 4,760 Wellington Construction Equipment Manufacturers engaged in an installment sale with one of its major customers. The firm negotiated the terms of the installment sale for a specialized piece of equipment, full payment is required within 3 years. We present information related to Wellington's first 3 years of operation: (Click the icon to view the data.) Read the requirements. Now prepare the journal entry required to record the tax expense for Year 3. Account Year 3 Requirements a. Prepare the journal entries required to record the tax expense for all 3 years. b. Determine the net income reported on the income statement for the 3 years. Print Done Requirement b. Determine the net income reported on the income statement for the 3 years. (Use parentheses or a minus sign for numbers to be subtracted.) Year 1 Year 2 Year 3 Net income - - X