1. At a summary-level, prepare the journal entry to record the income tax expense of $7,417. Be sure to consider deferred tax assets and deferred tax liability changes.

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001318484/000155837021004258/ctrn-20210130x10k.htm#ITEM1ARISKFACTORS_230840

		Fiscal Year
		2020			2019			2018
Statutory rate applied to income before income taxes		$	(6,593)		$	(4,193)		$	(5,529)
State income taxes, net of federal benefit			(1,777)			(791)			(1,250)
State tax credits			168			308			276
State tax credits - valuation allowance (net of federal benefit)						(99)			10
Tax exempt interest						34			16
General business credits			878			1,456			1,409
(Deficit) Excess tax benefits from stock-based compensation			(58)			(83)			140
Other			(35)			(97)			(26)
Income tax expense		$	(7,417)		$	(3,465)		$	(4,954)

Deferred tax assets and deferred tax liabilities consist of the following (in thousands):

		January 30,			February 1,
		2021			2020
Deferred tax assets:
Inventory capitalization		$	1,628		$	2,176
Vacation liability			754			705
Operating lease liabilities			49,763			46,595
State tax credits			3,033			3,038
Stock compensation			1,598			796
Deferral of FICA tax			416
Legal expense reserve			128			128
Insurance liabilities			646			541
Other			532			659
Subtotal deferred tax assets			58,498			54,638
Less: State tax credits valuation allowance - net			(1,714)			(1,714)
Total deferred tax assets			56,784			52,924
Deferred tax liabilities:
Right of use asset			(47,672)			(45,095)
Book and tax depreciation differences			(2,040)			(373)
Prepaid expenses			(877)			(787)
Total deferred tax liabilities			(50,589)			(46,255)
Net deferred tax asset		$	6,195		$	6,669