Answer:
Answer and Explanation:
The Journal entry is shown below:-
1. Income Tax Expense Dr, $336 million
Deferred Tax Assets Dr, $29 million
($116 million × 25%)
To Income Tax Payable $365 million
($1,460 × 25%)
(Being income tax and deferred tax is recorded)
2. Income Tax Expense Dr, $400 million
To Income Tax Payable $340 million
($1,360 × 25%)
To Deferred Tax Assets $60 million
(($354.0 million - $116 million) × 25%)
(Being income tax and deferred tax is recorded)
Step-by-step explanation:
