Typical Corp. reported a federal tax liability of $6,000,000 for the year ended December 31, 2010

Typical Corp. reported a federal tax liability of $6,000,000 for the year ended December 31, 2010, when the tax rate was 40%. The deferred tax liability was related to a temporary difference of $15,000,000 caused by an installment sale on 2010. The temporary difference is expected to reverse in 2012. When the income deferred from taxation will become taxable. There are not other temporary differences. Assume a new tax law in 2011 and the tax rate, which remain a 40% through December 31, 2011, will become 48% for the tax year beginning after December 31, 2011. Pretax accounting income for the year 2011 is %30,000,000

Required

Prepare a compound journal entry to record Typical’s income tax expense for the year 2011. Show well labeled computations.