Chapter 16 Examples 1.Kent Land Management reported pretax accounting income in 2016, 2017, and 2018. In 2016 $140 million, including income of $40 million from installment sales of property. However, the installment sales income is reported on the tax return when collected, in 2017 ($10 million) and 2018 ($30 million). The enacted tax rate is 40% each year. 2016 2017 100 2018 100 Pre-accounting Income Subtract: Installment Income on IS 140 (40) Add: Installment Income on Tax Return Taxable Income 10 30 100 110 130 Return Chapter 16 Examples 1.Kent Land Management reported pretax accounting income in 2016, 2017, and 2018. In 2016 $140 million, including income of $40 million from installment sales of property. However, the installment sales income is reported on the tax return when collected, in 2017 ($10 million) and 2018 ($30 million). The enacted tax rate is 40% each year. 2016 2017 100 2018 100 Pre-accounting Income Subtract: Installment Income on IS 140 (40) Add: Installment Income on Tax Return Taxable Income 10 30 100 110 130 Return