At the end of the preceding year, World Industries had a deferred tax asset of $17,500,000 attributable to its only temporary difference of $50,000,000 for estimated expenses . At the end of the current year, the temporary difference is $45,000,000. At the beginning of the year there was no valuation account for the deffered tax asset. At year-end, World Industries now estimates that it's more likely that not that one- third of the deferred tax asset will never be realized. Taxable income is $12,000,000 for the current year, and the tax rate is 30% for all years.

REQUIRED: Prepare journal entries to record World Industries' income tax expense for the current year. Show well-labeled supporting computations for each component of the journal entries.