Case Development began operations in December 2016. 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. 2016 installment income was $400,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 20172019 are as follows:

2017	$	80,000	20	%
2018		230,000	30
2019		90,000	30

Pretax accounting income for 2016 was $570,000, which includes interest revenue of $20,000 from municipal bonds. The enacted tax rate for 2016 is 20%.

Required:

1.

Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Cases 2016 income taxes.

2.

What is Cases 2016 net income?

3.	How should the deferred tax amount be classified in a classified balance sheet?