At the end of the prior year, Fox Inc. had a deferred tax asset of $10,000,000 attributable to its only timing difference, a temporary difference $50,000,000 in a liability for estimated expenses. At the time a valuation allowance of $4,000,000 was established . At the end of the current year, the temporary difference is $45,000,000 and Fox determines that the balance in the valuation account should now be $5,000,000. Taxable income is $15,000,000 and the tax rate is 20% for all the years.

PREPARE APPROPRIATE JOURNAL ENTRIES FOR THE CURRENT YEAR.