Early in 2017, Altuve Corporation forecasted that it would report a deferred tax liability of $70 million at December 31, 2017, representing the additional tax that would be due to U.S. authorities if its unrepatriated foreign earnings were to be repatriated. Altuve is now considering the financial statement effects of the Tax Cuts and Jobs Act, which was enacted in 2017, on this deferred tax liability. The new law called for an immediate, one-time tax on all unrepatriated earnings as of December 31, 2017, after which foreign earnings of U.S. corporations would generally not be taxed. Altuve determined the amount of its deemed repatriation tax was $15 million.

Required:

1. Prepare the journal entry Altuve would use to record the imposition of the deemed repatriation tax.

2. Redo requirement 1 with the alternative assumption that Altuve had not recorded the deferred tax liability because the foreign earnings had been deemed to be indefinitely reinvested overseas.