Andre Company reported a $ 192,640 balance in its deferred tax liability account at the beginning of year 5. The deferred tax liability was due to using the straight- line method on its books and an accelerated depreciation method for tax purposes. The plant asset has two years of useful life remaining. At the beginning of year 5, the plant asset had a book basis of $ 1,000,000 and a tax basis of $ 518,400. We present depreciation expense and income before tax and depreciation for years 5 and 6 in the table below. Assuming a tax rate of 40%, prepare the journal entries required to record the tax provision for years 5 and 6.
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