Allmond Corporation, organized on January 3, 2016, had pretax accounting income of $27 million and taxable income of $34 million for the year ended December 31, 2016. The 2016 tax rate is 35%. The only difference between accounting income and taxable income is estimated product warranty costs. Expected payments and scheduled tax rates (based on recent tax legislation) are as follows:

2017	$	3 million	30	%
2018		1 million	30	%
2019		1 million	30	%
2020		2 million	25	%

Required:

1.

Determine the amounts necessary to record Allmonds income taxes for 2016 and prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter all amounts as positive values. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

	($ in millions)		Tax Rate %		Tax $	Recorded as:
Pretax accounting income	$27.0
Warranty costs reversing in:
2017		x		=
2018		x		=
2019		x		=
2020		x		=
Total deferred tax amount
Income taxable in current year		x		=

2.

Journal Entry Worksheet

Record 2016 income taxes.

Event

General Journal

Debit

Credit

1