Record 2018 income taxes.Record 2019 income taxes. balance in deferred tax liability.

Dixon Development began operations in Dacember 2018. When lots for industrial development are sold, Dixon recognizes income for financial reporting purposes in the year of the sale. For some lots, Dikon recognizes income for tax purposes when collected. Income recognized for financial reporting purposes in 2018 for lots sold this way wes $14 million, whicn wll be collected over the next three years. Scheduled collections for 209-2021 are as follows: 0 ointe 2019 2020 2021 million 6 mi1lion eBook Print References Pretax accounting income for 2018 was $19 milion The enacted tax rate is 30%. Required: 1. Assuming no differences between accounting income and taxable income other than those described above, prepare the journal enty lo record icome laxes ir? 2018. 2. Suppose a new tax law. revising the tax rate from 3C% to 25%, beginning in 2020, is enacted n 2019, when pretax accounting income was $16 million. No 2019 lot sales qualificd for the spccial tax treatment. Prcpare the appropriate journal entry to record income taxes in 2019. 3. If the new tax rate had not been enacted, what would have been the apprcpriate balance in the deferred tax liability account at the end uf 2019? 1 of 4 Next 1:58 AM 5/20/201