Dixon Development began operations in December 2016. When lots for industrial development are sold, Dixon recognizes income for financial reporting purposes in the year of the sale. For some lots, Dixon recognizes income for tax purposes when collected. Income recognized for financial reporting purposes in 2016 for lots sold this way was $15 million, which will be collected over the next three years. Scheduled collections for 20172019 are as follows:

2017	$	5	million
2018		7	million
2019		3	million
	$	15	million

Pretax accounting income for 2016 was $20 million. The enacted tax rate is 30%.

Required:

1.	Assuming no differences between accounting income and taxable income other than those described above, prepare the journal entry to record income taxes in 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

2.

Suppose a new tax law, revising the tax rate from 30% to 25%, beginning in 2018, is enacted in 2017, when pretax accounting income was $17 million. No 2017 lot sales qualified for the special tax treatment. Prepare the appropriate journal entry to record income taxes in 2017. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)

3.	If the new tax rate had not been enacted, what would have been the appropriate balance in the deferred tax liability account at the end of 2017? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).)