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Case Development began operations in December 2018. When property is sold on an installment basis, Case...

Case Development began operations in December 2018. When property is sold on an 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. 2018 installment income was $480,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2019–2021 are as follows:

2019 $ 100,000 20 %
2020 270,000 30
2021 110,000 30

Pretax accounting income for 2018 was $614,000, which includes interest revenue of $24,000 from municipal bonds. The enacted tax rate for 2018 is 20%.

Required:
1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case’s 2018 income taxes.

Record 2018 Income Taxes


2. What is Case’s 2018 net income?

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