Required:

$Assumingno$ differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry $to$ record Case's $2024$ income taxes.

$Whatis$ Case's $2024$ net income?

Case Development began operations $in$ December $2024.$ When property $is$ sold $onan$ installment basis, Case recognizes installment

income for financial reporting purposes $in$ the year $of$ the sale. For tax purposes, installment income $is$ reported $by$ the installment

method. $2024$ installment income was $$816,000$ and will $be$ collected over the next three years. Scheduled collections and enacted

tax rates for $2025-2027$ are $as$ follows:

Case also had product warranty costs $of$ $$284,000$ expensed for financial reporting purposes $in2024.$ For tax purposes, only the

$$68,000of$ warranty costs actually paid $in2024$ was deducted. The remaining $$216,000$ will $be$ deducted for tax purposes when paid

over the next three years $as$ follows:

$2025,$$$80,000$

$2026,72,000$

$2027,64,000$

Pretax accounting income for $2024$ was $$972,000,$ which includes interest revenue $of$ $$22,000$ from municipal bonds. The enacted tax

rate for $2024is20\%.$