At the end of the current year, Newsmax Inc. has $400,000 of subscriptions received in advance included in its balance sheet. A disclosure note reveals that the entire $400,000 will be recognized in the income statement in the next year. The current year's taxable income is $9,000,000. Assume an income tax rate of 30%. 1) What is the pretax accounting income in the current year? 2) Prepare the journal entry to record income taxes for the year. Show well-labeled computations. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B I U Paragraph Arial 14px A v TX % o@ a 1.) The pretax accounting income in the current year is going to be 9,400,000 because the $400,000 of subscriptions recieved in advance was included on the balance sheet. iii !!! debit credit 2.) Entry Income Tax expenses Income Tax Payable