Question - Deven's income is $90 million for 2013. Included in that $90 million is $1 million for a meals and entertainment expense (50% excluded for tax purposes), $4 million for life insurance proceeds because of an executive passing in 2013, and municipal bond interest adding up to $2 million. Straight line depreciation is used, however; MACRS on the tax return that created a negative difference of $10 million on this years tax return. It will reverse during the next 3 years. Net operating losses: $60 million and are expected to be used over the next 10 years (end of 2013). Deferred tax asset balance: $30 million (end of 2012) and no deferred tax liability. The tax rate is 40% and will remain 40%.
Show the journal entry for the 2013 income tax provision.