Patterson Development sometimes sells property on an installment basis. In those cases, Patterson reports income in its income statement in the year of the sale but reports installment income by the installment method on the tax return. Installment income in 2016 was $118 million, which Patterson expects to collect equally over the next four years. The tax rate is 30%, but based on an enacted law, is scheduled to become 40% in 2018. Pattersons pretax accounting income for the 2016 income statement was $529 million. Of this amount, $29 million is non-taxable revenue from proceeds of a life insurance policy. There were no differences between accounting income and taxable income other than those described above and no cumulative temporary differences existed at the beginning of the year.

Patterson Development sometimes sells property on an installment basis. In those cases, Patterson reports income in its income statement in the year of the sale but reports installment income by the installment method on the tax return. Installment income in 2016 was $118 million, which Patterson expects to collect equally over the next four years. The tax rate is 30%, but based on an enacted law is scheduled to become 40% in 2018 Patterson's pretax accounting income for the 2016 income statement was $529 million. Of this amount, $29 million is non-taxable revenue from proceeds of a life insurance policy. There were no differences between accounting income and taxable income other than those described above and no cumulative temporary differences existed at the beginning of the year. Required 1. Prepare the appropriate journal entry to record Patterson's 2016 income taxes. (lf no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) view transaction list view general journal Journal Entry Worksheet Record the income taxes. Transaction General Journal Debit Credit 1 Income tax expense Deferred tax liability Income tax payable *Enter debits before credits done clear entry record entry 2. What is Patterson's 2016 net income? (Enter your answer in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) Net income