Allmond Corporation, organized on January 3, 2011, had pretax accounting income of $14 million and taxable income of $20 million for the year ended December 31, 2011. The 2011 tax rate is 35%. The only difference between accounting income and taxable income is estimated product warranty costs. Expected payments and scheduled tax rates (based on recent tax legislation) are as follows:
Required:
1. Determine the amounts necessary to record Allmond's income taxes for 2011 and prepare the appropriate journal entry.
2. What is Allmond's 2011 net income?