Dixon Development began operations in December 2018. 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 2018 for lots sold this way was $30 million, which will be collected over the next three years. Scheduled collections for 2019-2021 are as follows: 2019 2020 2021 $ 8 million 14 million 8 million $ 30 million Pretax accounting Income for 2018 was $38 million. The enacted tax rate is 45%. 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 2018. 2. Suppose a new tax law, revising the tax rate from 45% to 40%, beginning in 2020, Is enacted in 2019, when pretax accounting Income was $34 million. No 2019 lot sales qualified for the special tax treatment. Prepare the appropriate Journal entry to record Income taxes in 2019. 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 2019? X Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Assuming no differences between accounting income and taxable income other than those described above, prepare the journal entry to record income taxes in 2018. (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).) Show less No General Journal Debit Credit Date Dec 31, 2018 Income tax expense Deferred tax liability Income tax payable Required 1 Required 2 > Dixon Development began operations in December 2018. 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 2018 for lots sold this way was $30 million, which will be collected over the next three years. Scheduled collections for 2019-2021 are as follows: 2019 2020 2021 $ 8 million 14 million 8 million $ 30 million Pretax accounting Income for 2018 was $38 million. The enacted tax rate is 45%. 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 2018. 2. Suppose a new tax law, revising the tax rate from 45% to 40%, beginning in 2020, Is enacted in 2019, when pretax accounting Income was $34 million. No 2019 lot sales qualified for the special tax treatment. Prepare the appropriate Journal entry to record Income taxes in 2019. 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 2019? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Suppose a new tax law, revising the tax rate from 45% to 40%, beginning in 2020, is enacted in 2019, when pretax accounting income was $34 million. No 2019 lot sales qualified for the special tax treatment. Prepare the appropriate journal entry to record income taxes in 2019. (If no entry is required for a transaction/event, select "No journal entry required in the d to 1 decimal place (1.e., 5,500,000 should be entered as 5.5).) Show less General Journal Debit Credit No 1 Date Dec 31, 2019 Income tax expense Deferred tax liability Income tax payable Dixon Development began operations in December 2018. 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 2018 for lots sold this way was $30 million, which will be collected over the next three years. Scheduled collections for 2019-2021 are as follows: 2019 2020 2021 $ 8 million 14 million 8 million $ 30 million Pretax accounting Income for 2018 was $38 million. The enacted tax rate is 45%. 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 2018. 2. Suppose a new tax law, revising the tax rate from 45% to 40%, beginning in 2020, Is enacted in 2019, when pretax accounting Income was $34 million. No 2019 lot sales qualified for the special tax treatment. Prepare the appropriate jou Income taxes in 2019. 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 2019? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 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 2019? (Enter your answer in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) Balance in the deferred tax liability 88.0 million million