Dixon Development began operations in December 2024. 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 2024 for lots sold this way was $24 million, which will be collected over the next three years. Scheduled collections for 2025-2027 are as follows 2025 2026 $8 million 12 million 2027 4 million $ 24 million Pretax accounting income for 2024 was $33 million. The enacted tax rate is 40% 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 2024 2. Suppose a new tax law, revising the tax rate from 40% to 35%, beginning in 2026, is enacted in 2025, when pretax accounting income was $27 million No 2025 lot sales qualified for the special tax treatment Prepare the appropriate journal entry to record income taxes in 2025 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 2025? 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 40% to 35%, beginning in 2026, is enacted in 2025, when pretax accounting income, was $27 million. No 2025 lot sales qualified for the special tax treatment. Prepare the appropriate journal entry to record income taxes in 2025 Note: 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 (e, 5,500,000 should be entered as 5.5) View transaction st View journal entry worksheet No 1 Date December 31, 2025 General Journal Income tax expense Deferred tax liability Income tax payable Debit Credit 20 90 140 Show less Dixon Development began operations in December 2024. 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 2024 for lots sold this way was $24 million, which will be collected over the next three years. Scheduled collections for 2025-2027 are as follows 2025 2026 2027 $8 million 12 million 4 million $24 million Pretax accounting income for 2024 was $33 million. The enacted tax rate is 40% 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 2024 2. Suppose a new tax law, revising the tax rate from 40% to 35%, beginning in 2026, is enacted in 2025, when pretax accounting income was $27 million No 2025 lot sales qualified for the special tax treatment. Prepare the appropriate journal entry to record income taxes in 2025 3. If the new tax rate had not been enacted, what would have been the appropriate balance in the deferred tax liability account of the end of 20257 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 20257 Note: Enter your answer in millions rounded to 1 decimal place (e., 5,500,000 should be entered as 5.5) Balance in the deferred tax batality 32 million