Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage$-$of$-$completion method. The contract calls for progress billings and payments of $$1,550,000$ each quarter. The total contract price is $$18,600,000$ and Seasons estimates total costs of $$17,750,000.$ Seasons estimates that the building will take $3$ years to complete, and commences construction on January $2,2021.$

$$

At December $31,2022,$ Seasons Construction estimates that it is $75\%$ complete with the building; however, the estimate of total costs to be incurred has risen to $$18,000,000$ due to unanticipated price increases. What is reported in the balance sheet at December $31,2022$ for Seasons as the difference between the Construction in Process and the Billings on Construction in Process accounts, and is it a debit or a credit?

Difference between the accounts Debit$/$Credit

$30\%$

$25\%$

$20\%$

Taxable Income

$$2,000,000$

$2,400,000$

Taxes Paid

$$700,000$

$720,000$

In $2021,$ Nickerson had an operating loss of $$2,480,000.$ What amount of income tax benefits should be reported on the $2021$ income statement due to this loss assuming that it uses the carryback provision?