Prepare the journal entry to record Alamo's income tax expense for current year. The following information relates to Franklin Freightwavs for its first year of operations (data in millions of dollars): The applicable tax rate is 40%. There are no other temporary or permanent differences. Required: Prepare the journal entry to record the tax expense for Franklin Freightways first year of operations. At the end of the preceding year, World Industries had a deferred tax asset of $17, 500,000, attributable to its only temporary' difference of $50,000,000 for estimated expenses. At the end of the current year, the temporary difference is $45,000,000. At the beginning of the year there was no valuation account for the deferred tax asset. At year-end. World Industries now estimates that it is more likely than not that one-third of the deferred tax asset will never be realized. Taxable income is $12,000,000 for the current year and the tax rate is 30% for all years. Required: Prepare journal entries to record World Industries' income tax expense for the current year. Show well-labeled supporting computations for each component of the journal entries