Exercise 16-17 (Algo) Multiple tax rates [LO16-3, 16-6] Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $34 million and taxable income of $44 million for the year ended December 31, 2021. The 2021 tax rate is 25%. The only difference between accounting income and taxable income is estimated product warranty costs. Assume that expected payments and scheduled tax rates (based on recently enacted tax legislation) are as follows: 2022 $4 million 2023 2 million 30% 30 2024 2 million 2025 2 million 30% 25% Required: 1. Determine the amounts necessary to record Allmond's income taxes for 2021 and prepare the appropriate journal entry. 2. What is Allmond's 2021 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 Determine the amounts necessary to record Allmond's income taxes for 2021. (Enter your answers in millions rounded to 2 decimal places (ie., 5,500,000 should be entered as 5.50). Enter all amounts as positive values.) Pretax accounting income ($ in millions) $ Tax Rate % Tax $ Recorded as: 34.00 Warranty costs reversing in: 2022 4.00 x 30% - $ 1.20 2023 2.00 x 30% $ 0.60 2024 2.00 x 30%- $ 0.60 2.00 x 25% $ 0.50 2025 $ 2.90 Deferred tax asset Total deferred tax amount Income taxable in current year $ 44.00 x 25% $ 11.00 Income tax payable Required 1 GJ > Exercise 16-17 (Algo) Multiple tax rates [LO16-3, 16-6] Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $34 million and taxable income of $44 million for the year ended December 31, 2021. The 2021 tax rate is 25%. The only difference between accounting income and taxable income is estimated product warranty costs. Assume that expected payments and scheduled tax rates (based on recently enacted tax legislation) are as follows: 2022 $4 million 30% 2023 2 million 30% 2024 2 million 301 2025 2 million 251 Required: 1. Determine the amounts necessary to record Allmond's income taxes for 2021 and prepare the appropriate journal entry. 2. What is Allmond's 2021 net income? Complete this question by entering your answers in the tabs below. Required 11 Calculation Required 1 G Required 2 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 your answers in millions rounded to 2 decimal places (1.e., 5,500,000 should be entered as 5.50).). View transaction list View journal entry worksheet No Transaction General Journal 1 1 Income tax expense Deferred tax asset Income tax payable Debit Credit 8.10 2.90 11.00 Exercise 16-17 (Algo) Multiple tax rates [LO16-3, 16-6] Allmond Corporation, organized on January 3, 2021, had pretax accounting income of $34 million and taxable income of $44 million for the year ended December 31, 2021. The 2021 tax rate is 25%. The only difference between accounting income and taxable income is estimated product warranty costs. Assume that expected payments and scheduled tax rates (based on recently enacted tax legislation) are as follows: 2022 $4 million 30% 2023 2 million 30% 2024 2 million 30% 2025 2 million 25% Required: 1. Determine the amounts necessary to record Allmond's income taxes for 2021 and prepare the appropriate journal entry. 2. What is Allmond's 2021 net income? Complete this question by entering your answers in the tabs below. Required 1 Calculation Required 1 GJ Required 2 What is Allmond's 2021 net income? (Enter your answer in millions rounded to 2 decimal places (ie., 5,500,000 should be entered as 5.50).) Net income $ 25.00 million