The DeVille Company reported pretax accounting income on its income statement as follows: 2021 $ 450,000 2022 370,000 2023 440,000 2024 480,000 Included in the income...

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Accounting

The DeVille Company reported pretax accounting income on itsincome statement as follows:
2021 $ 450,000
2022 370,000
2023 440,000
2024 480,000

Included in the income of 2021 was an installment sale of propertyin the amount of $70,000. However, for tax purposes, DeVillereported the income in the year cash was collected. Cash collectedon the installment sale was $28,000 in 2022, $35,000 in 2023, and$7,000 in 2024.

Included in the 2023 income was $30,000 interest from investmentsin municipal governmental bonds.

The enacted tax rate for 2021 and 2022 was 40%, but during 2022,new tax legislation was passed reducing the tax rate to 25% for theyears 2023 and beyond.

Required:
Prepare the year-end journal entries to record income taxes for theyears 2021–2024. (If no entry is required for atransaction/event, select "No journal entry required" in the firstaccount field.)

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Solution Computation of Taxable Income and Income Tax Payable Particulars 2021 2022 2023 2024 Pretax accounting income 45000000 37000000 44000000 48000000 Less Income from installment sale property 7000000 000 000 000 Add Collection of installment sales 000 2800000 3500000 700000 Less Interest on See Answer

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