In 2018, Ryan Management collected rent revenue for 2019 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as income in the period tenants occupy rental property, but for income tax reporting it is taxed when collected. The deferred portion of the rent collected in 2018 was $40 million. Taxable income is $160 million. No temporary differences existed at the beginning of the year, and the tax rate is 30%.

Prepare the appropriate journal entry to record income taxes. (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).

Alvis Corporation reports pretax accounting income of $220,000, but due to a single temporary difference, taxable income is only $115,000. At the beginning of the year, no temporary differences existed. Required: 1. Assuming a tax rate of 30%, what will be Alviss net income? 2. What will Alvis report in the balance sheet pertaining to income taxes?