= Homework: Week Two Question 20, E17-9 (similar to) Part 1 of 6 HW Score: 26.47%, 5.82 of 22 points Points: 0 of 1 Save Dickerson Construction Equipment Manufacturers engaged in an installment sale with one of its major customers. The firm negotiated the terms of the installment sale for a specialized piece of equipment; full payment is required within 3 years. We present information related to Dickerson's first 3 years of operation: (Click the icon to view the data.) Assume that Dickerson invested in tax-free municipal bonds. The bonds pay interest of $1,700 each year. In addition, a new tax law enacted at the beginning of Year 2 reduced the corporate tax rate to 35%. (Assume the municipal bond interest income is not included in income before tax and taxable income.) Read the requirements. Requirement a. Prepare the journal entries required to record the tax provision for all 3 years, as well as the journal entry needed to record the effect of the tax rate change on any deferred tax accounts. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin with the journal entry required to record the tax provision for Year 1. Data table Account Requirements Year 1 Year 1 Year 2 Year 3 Account GAAP Tax GAAP Tax GAAP Tax Sales $ 16,000 $ 16,000 $ 9,900 $ Gross profit on installment sales $ Taxable portion of cash collected 3,500 0 0 9,900 $ 0 15,700 $ 15,700 0 0 on installment sales Operating expenses 1,000 1,100 1,400 (200) (200) (700) (700) (900) (900) $ 19,300 $ 9,200 $ 14,800 Income before tax Taxable income $ 16,800 $ 10,300 $ 16,200 x 40% x 40% 40% swer $ 6,720 $ 4,120 $ 6,480 a. Prepare the journal entries required to record the tax provision for all 3 years, as well as the journal entry needed to record the effect of the tax rate change on any deferred tax accounts. b. Determine the net income reported on the income statement for all 3 years. c. Prepare the footnote, in dollars and percentages, required to reconcile the company's federal statutory income tax rate with its effective tax rate. Tax rate Tax payable