Problem $4($Sale of Land on the Instalment Method$)$

Hotel Corporation $($the Company$)$ is an accrual basis taxpayer that uses a calendar year end. For the year ended December $31,2023,$ the Company has taxable income of $$1,000,000$ and the Company$$s CFO has properly computed the Company$$s federal and state $($VA$)$ income taxes of $$257,400.$

In connection with your review of this new client, you learn from the Company$$s CFO that on December $31,2022,$ the Company sold a piece of unimproved real estate for a total sales price of $$200,000,$ with the first payment of $$100,000$ collected on January $1,2023.$ The land originally cost $$50,000.$ The CFO was under the mistaken impression that taxes on this sale would be paid when the final payment was collected on January $1,2024.$

Required

Calculate the Company$$s revised federal and VA income taxes for $2023$ when this instalment sale is properly reported. Ignore deferred income taxes.