Chumlee Company reported pretax accounting income of $140 million in 2015. Included in this income was an expense of $10 million attributable to a penalty paid to the SEC for using overly aggressive accounting polocies in the past. The penalty will not be deductible for tax purposes. Also included in income was $30 million of revenue associated a long term contract. This revenue will not be reported on the tax return until 2016. The tax rate is 40% for all years.
Prepare the entry in 2015 to properly account for income tax expense, income tax payable, and any deffered items.