TB Problem $16-135($Algo$)$

$12$ points

$015431$

At the end of the prior year, Doubtful inc. had a deferred tax asset of $$10,500,000$ attributable to its only timing difference, a temporary difference of $$42,000,000$ in a liability for estimated experses. At that time, a valuation allowance of $$3,280,000$ was established. At the end of the current year, the temporary difference is $$37,000,000,$ and Doubtful determines that the balance in the valuation account should now bo $$5,000,000.$ Taxable income is $$14,200,000$ and the tax rate is $25\%$ for all years.

Required:

Prepare journal entries to record Doubtful's income tax expense for the current year $($if no entry is required for a transaction$/$event$,$ select $"$No journal entry required" In the first account field..