Exercise $3.$ Dixon Development began operations in December $2021.$ When lots for industrial development are sold, Dixon recognizes income for financial reporting purposes in the year of the sale. Dixon recognizes income for tax purposes when cash is collected. Income recognized for financial reporting purposes in $2021$ for lots sold was $$12$ million, which will be collected over the next three years. Scheduled cash collections for $2022-2024$ are as follows:$202220232024$$$4$ million$5$ million$3$ million$$12$ millionPretax accounting income for $2021$ was $$16$ million. The enacted tax rate is $25\%.$