Dixon Development began operations in December 2021. 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 2021 for lots sold this way was $10 million, which will be collected over the next three years. Scheduled collections for 2022-2024 are as follows: 2022 2023 2024 $ 4 million 4 million 2 million $ 10 million Pretax accounting income for 2021 was $15 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 2021. 2. Suppose a new tax law, revising the tax rate from 30% to 25%, beginning in 2023, is enacted in 2022, when pretax accounting income was $12 million. No 2022 lot sales qualified for the special tax treatment. Prepare the appropriate Journal entry to record income taxes in 2022 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 2022? 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, F record income taxes in 2021. (If no entry is required for a transaction/event, select "No journal entry requires Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5).) View transaction list Journal entry worksheet 1 Record 2021 Income taxes, Dixon Development began operations in December 2021. 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 2021 for lots sold this way was $10 million, which will be collected over the next three years. Scheduled collections for 2022-2024 are as follows: 2022 2023 2024 $ 4 million 4 million 2 million $ 10 million Pretax accounting income for 2021 was $15 million. The enacted tax rate is 30% es 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 2021 2. Suppose a new tax law, revising the tax rate from 30% to 25%, beginning in 2023. is enacted in 2022, when pretax accounting income was $12 million No 2022 lot sales qualified for the special tax treatment. Prepare the appropriate Journal entry to record income taxes in 2022 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 2022? 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 30% to 25%, beginning in 2023, is enacted in 2022, when was $12 million. No 2022 lot sales qualified for the specal tax treatment. Prepare the appropriate journal ent 2022. (if no entry is required for a transaction event select "No journal entry required in the first account millions rounded to i decimal place de 5,500,000 should be entered as 5.5) View transaction list Journal entry worksheet Dixon Development began operations in December 2021. 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 2021 for lots sold this way was $10 million, which will be collected over the next three years. Scheduled collections for 2022-2024 are as follows. 2022 2023 2024 $ 4 million 4 million 2 million $ 10 million Pretax accounting income for 2021 was $15 million. The enacted tax rate is 30% Required: 1. Assuming no differences between accounting income and taxable income other than those described above, prepa the journal entry to record income taxes in 2021. 2. Suppose a new tax law, revising the tax rate from 30% to 25% beginning in 2023. Is enacted in 2022, when pretax accounting Income was $12 million No 2022 lot sales qualified for the special tax treatment. Prepare the appropriate journal entry to record income taxes in 2022 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 2022? Complete this question by entering your answers in the tobs 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 20227 (Enter your answer in millions rounded to i decimal place (1., 5.500.000 should be entered S 5.5)) million Balance in the deferred tax liability
