TB Problem 16-142 (Algo)

The information below pertains to Mondavi Corporation:

(a.) For the current year temporary differences existed between the financial statement carrying amounts and the tax basis of the following:

	Carrying Amount			Tax Basis			Future Taxable or (Deductible) Amount
Buildings and equipment	$	64,000,000		$	48,600,000		$	15,400,000
Prepaid insurance		1,400,000			0			1,400,000
Liability-loss contingency		10,400,000			0			(10,400,000	)

(b.) No temporary differences existed at the beginning of the year.

(c.) Pretax accounting income was $340,000,000 and taxable income was $124,000,000 for the year and the tax rate is 40%. Permanent differences are the cause of any difference between pretax accounting income and taxable income that are not due to temporary differences.

Required: Prepare the journal entry to record the tax provision for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)