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 $120 million, which Patterson expects to collect equally over four years beginning in 2016. 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 $530 million. Of this amount, $30 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.

24. 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 $120 million, which Patterson expects to collect equally over four years beginning in 2016. 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 $530 million. Of this amount, $30 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. Show calculations. 2. What is Patterson's 2016 net income