Allmond Corporation, organized on January 3, 2024, had pretax accounting income of $14 million and taxable income of $20 million for the year ended December 31, 2024. The 2024 tax rate is 25%. The only difference between accounting income and taxable income is estimated product warranty costs. Assume that expected payments and scheduled tax rates (based on recently enacted tax legislation) are as follows:

Required:
1. Determine the amounts necessary to record Allmond’s income taxes for 2024 and prepare the appropriate journal entry.
2. What is Allmond’s 2024 net income?

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2025 2026 2027 2028 $2 million 1 million 1 million 2 million 20% 20% 20% 15%