20 pts Part IV-Temporary Differences and Permanent Differences (20 points) 1. Celluloid Development began operations in December Year 1. When property is sold on an basis. Celluloid recognizes installment income for financial reporting purposes in the war of the sale For tax purposes, installment income is reported by the installment method year installment income was $570,000 and will be collected over the next three years. Scheduled collections and ended taxes for year 2-year 4 are as follows: Pretax accounting income for year 1 was $817.000, which includes interest revenue of $11.700 from municipal governmental bonds. The enacted tax rate for year 1 is 30%. Year 2 $140,000 30% Year 3 240.000 40% Year 4 190,000 40% Required: 1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Celluloid's year 1 income taxes. 2. What is Celluloid's year 1 net income? 3. What is Celluloid's year 1 effective tax rate? Is it the same as enacted tax rate and why? 20 pts Part IV-Temporary Differences and Permanent Differences (20 points) 1. Celluloid Development began operations in December Year 1. When property is sold on an basis. Celluloid recognizes installment income for financial reporting purposes in the war of the sale For tax purposes, installment income is reported by the installment method year installment income was $570,000 and will be collected over the next three years. Scheduled collections and ended taxes for year 2-year 4 are as follows: Pretax accounting income for year 1 was $817.000, which includes interest revenue of $11.700 from municipal governmental bonds. The enacted tax rate for year 1 is 30%. Year 2 $140,000 30% Year 3 240.000 40% Year 4 190,000 40% Required: 1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Celluloid's year 1 income taxes. 2. What is Celluloid's year 1 net income? 3. What is Celluloid's year 1 effective tax rate? Is it the same as enacted tax rate and why