At the end of the year, the deferred tax asset account had a balance of $12.8 million attributable to a cumulative temporary difference of $32 million in a liability for estimated expenses. Taxable income is $38.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 40%.

Prepare the journal entry(s) to record income taxes assuming it is more likely than not that one-fourth of the deferred tax asset will not ultimately be realized.

NOTE:

These are the correct entries, I am just missing the values (DTA is NOT zero):

Debit: Income Tax Expense ______

Debit Deferred Tax Asset _____

Credit: Income Tax Payable 15.2

Debit: Income Tax Expense _______

Credit: Valuation Allowance - Deferred Tax Asset _______