At the beginning of its fiscal year, XYZ Company purchased an asset for $32,000,000 with a useful life of 40 years. The asset is depreciated using the straight-line method for book purposes but the double-declining balance (33%) for tax purposes. Assume that revenue is $12,000,000. The tax rate for XYZ Company is 21%.

Required:

1. Calculate the tax expense and the taxes payable for XYZ Company.

2. Complete the Journal entry for the taxes calculated above.