80.2K

Verified Solution

Link Copied!

The DeVille Company reported pretax accounting income on its income statement as follows: Answer is not complete.

$\backslash$table$[[$No$,$Date,,,Debit,Credit$],[1,$December $31,202$ Income tax expense,$(,,],[,$Income tax payable,$(,,],[,$Deferred tax liability,$2,,],[2,$December $31,202$ Income tax expense,V$,,],[,$Deferred tax liability,grad,,$],[,$Income tax payable,$2,,],[3,$December $31,202$ Income tax expense,$2,,],[,$Deferred tax liability,$2,,],[,$Income tax payable,$2,,],[4,$December $31,202$ Income tax expense,V$,,],[,$Deferred tax liability,grad,,$],[,$Income tax payable,$(,,]]$

Included in the income of $2024$ was an installment sale of property in the amount of $$52,000.$ However, for tax purposes, DeVille

reported the income in the year cash was collected. Cash collected on the installment sale was $$20,800$ in $2025,$$$26,000$ in $2026,$

and $$5,200$ in $2027.$

Included in the $2026$ income was $$21,000$ interest from investments in municipal governmental bonds.

The enacted tax rate for $2024$ and $2025$ was $40\%,$ but during $2025,$ new tax legislation was passed reducing the tax rate to $25\%$ for

the years $2026$ and beyond.

Required:

Prepare the year$-$end journal entries to record income taxes for the years $2024-2027.$

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

Show all imagesShow all images

Answer & Explanation Solved by verified expert

See Answer