Vaugh Development began operations $in$ December $2024.$ When property $is$ sold $onan$ installment basis, Vaugh 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 $$160,000$ and will $be$ collected over the next three years: $2025,$ $$100,000$;$2026,$$$40,000$;

$2027,$$$20,000.$

Vaugh also had product warranty costs $of$ $$46,000$ expensed for financial reporting purposes $in2024.$ For tax purposes, only the $$6,000of$ warranty costs actually paid $in2024$ was deducted. The

remaining $$40,000$ will $be$ deducted for tax purposes when paid over the next three years $as$ follows: $2025,$$$18,000$;$2026,$$$16,000$;$2027,$$$6,000.$

Pretax accounting income for $2024$ was $$850,000,$ which includes interest revenue $of$ $$10,000$ from municipal governmental bonds. The enacted tax rate $is20\%$ for year $2024$ and $25\%$ for years

$2025-2027.$

The amount $of$ Vaugh's $2024$ net income would $be$:

$$680,000$

$$672,000$

$$676,000$

$$637,500$