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

Allmond Corporation, organized on January 3, 2018, had pretax accounting income of $25 million and taxable income of $33 million for the year ended December 31, 2018. The 2018 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:

2019	$	2 million	35	%
2020		2 million	35	%
2021		1 million	35	%
2022		3 million	25	%

Required: 1. Determine the amounts necessary to record Allmonds income taxes for 2018 and prepare the appropriate journal entry. 2. What is Allmonds 2018 net income?