Brief Exercise $16-7($Algo$)$ Valuation allowance $[$LO$16-3,16-4]$

At the end of the year, the deferred tax asset account had a balance of $\backslash (\backslash$$ $36\backslash )$ million attributable to a temporary difference of $\backslash (\backslash$$ $144\backslash )$ million in a liability for estimated expenses. Taxable income is $\backslash (\backslash$$ $156\backslash )$ million. No temporary differences existed at the beginning of the year, and the tax rate is $\backslash (25\backslash \%\backslash ).$

Prepare the journal entry$($s$)$ to record income taxes, assuming it is more likely than not that three$-$fourths of the deferred tax asset will not ultimately be realized.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in millions $($i$.$e$.,10,000,000$ should be entered as $10).$

Answer is not complete.

$\backslash$begin$\{$tabular$\}\{|$l$|$c$|$l$|$c$|$c$|$c$|\}$

$\backslash$hline No & Transaction & $\backslash$multicolumn$\{1\}\{|$c$|\}\{$ General Journal $\}$ & Debit & Credit $\backslash \backslash$

$\backslash$hline $1$ & $1$ & Income tax expense & & $\backslash (39\backslash$times $\backslash )$ & $\backslash \backslash$

$\backslash$hline & & Deferred tax asset & & $36$ & $\backslash \backslash$

$\backslash$hline & & Income tax payable & & & $\backslash \backslash$

$\backslash$hline & & & & & $\backslash \backslash$

$\backslash$hline $2$ & $2$ & No Transaction Recorded & & $\backslash \backslash$

$\backslash$hline

$\backslash$end$\{$tabular$\}$