Convenience goods such as candy, gum, and cigarettes are normally distributed using distribution.

Intensive distribution is when convenience goods like candy, gum, magazines, and cigarettes are distributed. These goods are distributed to numerous retail stores, convenience stores, and vending machines. With this type of distribution the consumer can encounter anywhere they go. 

Since Tax Payable is $940000 @ 40%, Taxable income will be:

= $940,000 × (1/40%)

= $2,350,000

Only Temporary difference is Rent $490,000, which is being recognized for tax but not for Books.

Hence Pre-Tax Accounting income will be:

= $2,350,000 - $490,000

= $ 1,860,000

Therefore, Journal Entry will be:

Income Tax Expense A/c (1,860,000 × 40%)  Dr. $744,000

Deferred Tax Asset A/c  (490,000 × 40%)      Dr. $196,000

To Income Tax Payable                                                             $940,000

(To record income taxes for 2018)