E $16-7$ Temporary difference; future deductible amounts; taxable income given $$ LO$16-3$

Lance Lawn Services reports warranty expense by estimating the amount that eventually will be paid to satisfy warranties on its product

sales. For tax purposes, the expense is deducted when the warranty work is completed. At December $31,2024,$ Lance has a warranty

liability of $$2$ million and taxable income of $$75$ million. At December $31,2023,$ Lance reported a deferred tax asset of $$435,000$ related

to this difference in reporting warranties; it's only temporary difference. The enacted tax rate is $25\%$ each year.

Required:

Prepare the appropriate journal entry to record Lance's income tax provision for $2024.$