Brief Exercise 16-7 (Static) Valuation allowance [LO16-3, 16-4] At the end of the year, the deferred tax asset account had a balance of $4 million attributable to a temporary difference of $16 million in a liability for estimated expenses. Taxable income is $60 milion. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Prepare the journal entry(s) to record income taxes, assuming it is more likely than not that three-fourths of the deferred tax asset will not ultimately be realized. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions (i.e., 10,000,000 should be entered as 10 ). Record the income tax expense. Record the valuation allowance assuming it is more likely than not that three-fourths of the deferred tax asset will not ultimately be realized