Exercise $16-30(Algo)$ Multiple differences; multiple tax rates; financial statement effects $[LO16-2,16-3,16-5,16-6]$

Case Development began operations $in$ December $2024.$ When property $is$ sold $onan$ 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 $$888,000$ and will $be$ collected over the next three years. Scheduled collections and enacted tax rates for $2025-2027$ are $as$ follows:

$2025$$ $300,00020\%2026324,000252027264,00025$

Case also had product warranty costs $of$ $$352,000$ expensed for financial reporting purposes $in2024.$ For tax purposes, only the $$84,000of$ warranty costs actually paid $in2024$ was deducted. The remaining $$268,000$ will $be$ deducted for tax purposes when paid over the next three years $as$ follows:

$2025$$ $100,000202688,000202780,000$

Pretax accounting income for $2024$ was $$1,016,000,$ which includes interest revenue $of$ $$26,000$ from municipal bonds. The enacted tax rate for $2024is20\%.$

Required:

Assuming $no$ differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry $to$ record Case$s2024$ income taxes.

What $is$ Case$s2024$ net income?

Exercise $16-30(Algo)$ Multiple differences; multiple tax rates; financial statement effects $[LO16-2,16-3,$

$16-5,16-6]$

Case Development began operations $in$ December $2024.$ When property $is$ sold $onan$ 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 $$888,000$ 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 $of$ $$352,000$ expensed for financial reporting purposes $in2024.$ For tax purposes, only the

$$84,000of$ warranty costs actually paid $in2024$ was deducted. The remaining $$268,000$ will $be$ deducted for tax purposes when paid

over the next three years $as$ follows:

$2025,$$$100,000$

$2026,88,000$

$2027,80,000$

Pretax accounting income for $2024$ was $$1,016,000,$ which includes interest revenue $of$ $$26,000$ from municipal bonds. The enacted

tax rate for $2024is20\%.$

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?