Allmond Corporation, organized on January 3, 2024, had pretax accounting income of $24 million and taxable income of $34 million for the year ended December 31, 2024. The 2024 tax rate is 25%. The only difference between accounting income and taxable income is estimated product warranty costs. Assume that expected payments and scheduled tax rates (based on recently enacted tax legislation) are as follows:

2025	$ 4	million	30%
2026	3	million	30%
2027	1	million	30%
2028	2	million	25%

Required:

1. Determine the amounts necessary to record Allmonds income taxes for 2024 and prepare the appropriate journal entry.
2. What is Allmonds 2024 net income?

Determine the amounts necessary to record Allmonds income taxes for 2024. Note: Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50). Enter all amounts as positive values.

Description	Amount (in millions)		Tax Rate		Tax (in millions)	Recorded as:
Pretax accounting income	$24.00
Warranty costs reversing in:
2025				=
2026				=
2027				=
2028				=
Total deferred tax amount					$0.00	*
Income taxable in current year	$24.00			=		*

Boxes with a * have a drop-down box with the following:

• Deferred tax asset
• Deferred tax liability
• Income tax expense
• Income tax payable

Part 2

Journal entry worksheet

Record 2024 income taxes.

Transaction	General Journal	Debit	Credit
1

Part 3

What is Allmonds 2024 net income? Note: Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).