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

$2024$ was $$280$ million, which Patterson expects to collect equally over the next four years. The tax rate is $25\%,$ but based on an

enacted law, is scheduled to become $35\%$ in $2026.$

Patterson's pretax accounting income for the $2024$ income statement was $$730$ million. Of this amount, $$70$ 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:

Prepare the appropriate journal entry to record Patterson's $2024$ income taxes.

What is Patterson's $2024$ net income?

Complete this question by entering your answers in the tabs below.

Required $1$

Prepare the appropriate journal entry to record Patterson's $2024$ income taxes.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field. Do not round

intermediate calculations. Enter your answers in millions rounded to $2$ decimal places $($i$,$e$.,5,500,000$ should be entered as $5\mathrm{.}50).$

Journal entry worksheet

$1$

Record the income taxes.

Note: Enter debits before credits.