Case Development began operations in December 2024. When property is sold on an installment basis, Case...

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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 $618,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2025-2027 are as follows: 2025 $ 20% 150,000 2026 264,000 25 2027204,000 25 Case also had product warranty costs of $97,000 expensed for financial reporting purposes in 2024. For tax purposes, only the $24,000 of warranty costs actually paid in 2024 was deducted. The remaining $73,000 will be deducted for tax purposes when paid over the next three years as follows: 2025 $ 25,000 2026 28,000 2027 20,000 Pretax accounting income for 2024 was $821,000, which includes interest revenue of $11,000 from municipal bonds. The enacted tax rate for 2024 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 Case's 2024 income taxes. 2. What is Case's 2024 net income? Complete this question by entering your answers in the tabs below. Required Required 1 2 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. View transaction list View journal entry worksheet Debit Credit No Transaction General Journal 1 1 Income tax expense Deferred tax asset Deferred tax liability Income tax payable < Required 1 Required 2 > Show less 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 $618,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2025-2027 are as follows: 2025 $ 20% 150,000 2026 264,000 25 2027204,000 25 Case also had product warranty costs of $97,000 expensed for financial reporting purposes in 2024. For tax purposes, only the $24,000 of warranty costs actually paid in 2024 was deducted. The remaining $73,000 will be deducted for tax purposes when paid over the next three years as follows: 2025 $ 25,000 2026 28,000 2027 20,000 Pretax accounting income for 2024 was $821,000, which includes interest revenue of $11,000 from municipal bonds. The enacted tax rate for 2024 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 Case's 2024 income taxes. 2. What is Case's 2024 net income? Complete this question by entering your answers in the tabs below. Required Required 1 2 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. View transaction list View journal entry worksheet Debit Credit No Transaction General Journal 1 1 Income tax expense Deferred tax asset Deferred tax liability Income tax payable < Required 1 Required 2 > Show less