At December 31, 2016, Wonderland Company had a current deferred tax asset of $60,000, arising from cash for
software subscriptions received and taxed in 2016 but that will be recognized as income for accounting purposes in
2017; a non-current deferred tax liability of $160,000 arising from an excess of MACRS tax depreciation over
straight-line accounting depreciation of plant assets; and a long-term deferred tax asset of $80,000, arising from
contingency expenses for accounting purposes that will be tax deductible when paid (estimated to be in 2018). The
2017 pretax financial income and taxable income for Wonderland are as follows:
Pretax financial income			$ 700,000
Estimated bad debt expense			$ 60,000
Software subscriptions earned (cash received in 2016)			$ (200,000)
Rent received in advance			$ 120,000
Excess of MACRS tax depreciation over straight-line book depreciation			$ (200,000)
Taxable income			$ 480,000
The income tax rate for all years			35%
Required:
Prepare the income tax journal entry for the Wonderland Company at the end of 2017