Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $26 million and taxable income of $36 million for the year ended December 31, 2018. The 2018 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: 2019 $ 2 million 30 % 2020 3 million 30 % 2021 3 million 30 % 2022 2 million 25 % Required: 1. Determine the amounts necessary to record Allmonds income taxes for 2018 and prepare the appropriate journal entry. 2. What is Allmonds 2018 net income?

Determine the amounts necessary to record Allmond's income taxes for 2018. (Enter your answers in mil decimal place (i.e., 5,500,000 should be entered as 5.5). Enter all amounts as positive values.) | Tax Rate % ($ in millions) 26.0 Tax $ Recorded as: Pretax accounting income Warranty costs reversing in: 2019 2020 2021 2022 Total deferred tax amount 0.0 Income taxable in current year $ 26.0x