Flex Mirrors, Ltd. offers a three- year warranty on all its products. In year 1, the company reported income before warranty expense of $ 600,000 and estimated that warranty repairs would cost the company $ 115,000 over the three- year period. Actual repairs for the current year amounted to $ 40,000. Flex Mirrors’ tax rate is 40%. After reviewing all available evidence, management deter-mines that only 75% of this amount will ultimately result in tax- deductible expenses over the warranty period. Prepare the journal entries required to record the tax provision and valuation allowance for year 1.