Problem 3-27 (LO. 1, 3, 4) Willingham, Inc., an accrual basis C corporation, reports pretax book income of $1,600,000. At the beginning of the year, Willingham reported no deferred tax accounts on its balance sheet. At the end of the year, Willingham's depreciable assets had a net book value of $15,000,000. It is subject to a 21% U.S. income tax rate in the current year and for the foreseeable future. Willingham's book-tax differences include the following. Estimate of uncollectible accounts at year end $4,000,000 3,000,000 Tax depreciation in excess of book Book gain from installment sale of nonbusiness asset, deferred for tax 2,000,000 Interest income from school district bonds 200,000 Willingham's current income tax expense is $ X and deferred income tax expense is $ Prepare the GAAP journal entries for Willingham's income tax expense. JOURNAL DATE Description Post. Ref. Debit Credit Income tax expense (provision) Income tax payable Deferred tax liability