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. $2024$ installment income was $$726,000$ and will be collected over the next three years. Scheduled collections and enacted

tax rates for $2025-2027$ are as follows:

Case also had product warranty costs of $$199,000$ expensed for financial reporting purposes in $2024.$ For tax purposes, only the

$$48,000$ of warranty costs actually paid in $2024$ was deducted. The remaining $$151,000$ will be deducted for tax purposes when paid

over the next three years as follows:

Pretax accounting income for $2024$ was $$917,000,$ which includes interest revenue of $$17,000$ from municipal bonds. The enacted tax

rate for $2024$ is $20\%.$

Required:

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.

What is Case's $2024$ net income?

Complete this question by entering your answers in the tabs below.

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.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Enter your answers in

whole dollars.