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 $12 million, which will be collected over the next three years. Scheduled collections for 2025-2027 are as follows: 2025 $4 million 5 million 2026 2027 3 million $12 million Pretax accounting income for 2024 was $16 million. The enacted tax rate is 25%. 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 25% to 20%, beginning in 2026, is enacted in 2025, when pretax accounting income was $20 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 Assuming no differences between accounting income and taxable income other than those described above, prepare the journal entry to record income taxes in 2024. 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 (i.e., 5,000,000 should be entered as 5). View transaction list Journal entry worksheet Show less