The DeVille Company reported pretax accounting income on its income statement as follows:

$2024$ $ $430,000$

$2025350,000$

$2026420,000$

$2027460,000$

Included in the income of $2024$ was an installment sale of property in the amount of $$62,000.$ However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $$24,800$ in $2025,$ $$31,000$ in $2026,$ and $$6,200$ in $2027.$

Included in the $2026$ income was $$26,000$ interest from investments in municipal governmental bonds.

The enacted tax rate for $2024$ and $2025$ was $40\%,$ but during $2025,$ new tax legislation was passed reducing the tax rate to $25\%$ for the years $2026$ and beyond.

Required:

Prepare the year$-$end journal entries to record income taxes for the years $2024–2027.$

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

 

Answer rating: 100% (QA)

ANSWER Here are the yearend journal entries to record inco... View the full answer