Exercise 16-26 Multiple differences; multiple tax rates; balance sheet classification [LO16-1, 16-2, 16-4, 16-5, 16-6, 16-8] Case Development began operations in December 2016. When property is sold on an installment basis Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2016 installment income was $620,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2017-2019 are as follows 2017 2018 2019 $154,000 30% 260,000 40 206,000 40 Case also had product warranty costs of $82,000 expensed for financial reporting purposes in 2016. For tax purposes, only the $21,000 of warranty costs actually paid in 2016 was deducted. The remaining $61,000 will be deducted for tax purposes when paid over the next three years as follows 2017 2018 2019 $20,400 30% 25,400 40 15,200 40 Pretax accounting income for 2016 was $840,000, which includes interest revenue of $12,000 from municipal bonds. The enacted tax rate for 2016 is 30% Required: 1. Assuming no differences between accounting income and taxable income other than those described above, prepare the appropriate journal entry to record Case's 2016 income taxes. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field Enter your answers in thousands and round your answers to 2 decimal places.) View transaction list View journal entry worksheet Event General Journal Debit Credit 0 Income tax expense Deferred tax liability