Problem - Ace Company shows 2016 pretax accounting income (I called this book income in class), of $11 million. Due to a temporary difference, taxable income for 2016 is $6 million. All Deferred Tax Asset accounts and Deferred Tax Liability accounts had a zero balance on January 1, 2016 (start of the year). (Assume the tax rate for 2016 & all later years is 15%).
Give the 2016 journal entry for income taxes, any deferred tax assets/liabilities, etc.