Case Development began operations in December 2024. When property is sold on an installment basis, Case recognizes income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the insta method. The 2024 installment income was $840,000 and will be collected over the next three years. Scheduled collection= enacted tax rates for 2025-2027 are as follows: 2025 2026 2027 $ 190,000 450,000 200,000 30% 40 40 Pretax accounting income for 2024 was $1,142,000, which includes interest revenue of $42,000 from municipal governmen The enacted tax rate for 2024 is 30%. Required: 1. Assuming no differences between accounting income and taxable income other than those described above prepare
Case Development began operations in December 2024. When property is sold on an installment basis, Case recognizes income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the insta method. The 2024 installment income was $840,000 and will be collected over the next three years. Scheduled collection= enacted tax rates for 2025-2027 are as follows: 2025 2026 2027 $ 190,000 450,000 200,000 30% 40 40 Pretax accounting income for 2024 was $1,142,000, which includes interest revenue of $42,000 from municipal governmen The enacted tax rate for 2024 is 30%. Required: 1. Assuming no differences between accounting income and taxable income other than those described above prepare
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Case Development began operations in December 2024. When property is sold on an installment basis, Case recognizes installment
income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment
method. The 2024 installment income was $840,000 and will be collected over the next three years. Scheduled collections and
enacted tax rates for 2025-2027 are as follows:
2025
2026
2027
$ 190,000
450,000
200,000
30%
40
40
Pretax accounting income for 2024 was $1,142,000, which includes interest revenue of $42,000 from municipal governmental bonds.
The enacted tax rate for 2024 is 30%.
Required:
1. Assuming no differences between accounting income and taxable income other than those described above, prepare the
appropriate journal entry to record Case's 2024 income taxes.
2. What is Case's 2024 net income?
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