In 20X1, MB Inc. is subject to a 21% tax rate. For book purposes, it expenses $1,500,000 of expenditures. MB intends to deduct these expenditures on its 20X1 tax return despite tax law precedent that makes it less than 50% probable that the deduction will be sustained on its technical merits. Instead, the best estimate is that the IRS will allow these expenses to be amortized straight line over a 15-year period. In 20X1 and each of the subsequent 14 years, $100,000 of amortization would be allowed.

Required:

1. Determine which accounts MB would debit and credit in 20X1 and for how much in properly accounting for this uncertain tax position.

2. Prepare the journal entries that MB would make in 20X2 related to this uncertain tax position.