Exercise 16-15 Multiple tax rates [LO16-2, 16-5]

Allmond Corporation, organized on January 3, 2016, had pretax accounting income of $15 million and taxable income of $23 million for the year ended December 31, 2016. The 2016 tax rate is 40%. The only difference between accounting income and taxable income is estimated product warranty costs. Expected payments and scheduled tax rates (based on recent tax legislation) are as follows:

2017	$	3 million	30	%
2018		1 million	30	%
2019		2 million	30	%
2020		2 million	25	%

Required:

1.

Determine the amounts necessary to record Allmonds income taxes for 2016 and prepare the appropriate journal entry. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter all amounts as positive values. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

2.	What is Allmonds 2016 net income? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)