Exercise 16-32 (Algo) Tax credit; uncertain tax position (L016-9) Delta Catfish Company has taken a position in its tax return to claim a tax credit of $190 million (direct reduction in taxes payable) and has determined that its sustainability is "more likely than not," based on its technical merits. Delta has developed the probability table shown below of all possible material outcomes: Probability Table ($ in millions) Amount of the tax benefit that management expects to receive Percentage likelihood that the tax benefit will be sustained at this level $190 10% $190 20% Delta's taxable income is $828 million for the year. Its effective tax rate is 25%. The tax credit would be a direct reduction in current taxes pavable, Delta's taxable income is $828 million for the year. Its effective tax rate is 25%. The tax credit would be a direct reduction in current taxes payable. Required: 1. At what amount would Delta measure the tax benefit in its income statement? 2. Prepare the appropriate journal entry for Delta to record its income taxes for the year. Exercise 16-28 (Algo) Multiple tax rates (L016-2, 16-5, 16-6] Case Development began operations in December 2021. 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 2021 installment income was $720,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2022-2024 are as follows: 2022 2023 2024 $160,000 390,000 170,000 30% 40 40 Pretax accounting income for 2021 was $1,046,000, which includes interest revenue of $36,000 from municipal governmental bonds. The enacted tax rate for 2021 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 2021 income taxes. 2. What is Case's 2021 net income