Redfield Inc. began operations in 2018. Redfield Inc. sometimes sells pre-owned warehouses on an installment basis. In these cases, Redfield Inc. reports income in its income statement in the year of the sale. However, in its tax return Redfield Inc. reports installment income by the insallment method.

Installment income in 2018 was $90,000. Redfield Inc. expects to collect this equally over the next three years. Assume the tax rate is 30% but the tax rate will become 35% in the year 2020.

Redfield Inc.'s pre-tax accounting income from the 2018 income statement was $830,000. This includes $40,000 of interest revenue from an investment in municipal bonds (forever exempt from federal tax). There were no differences between accounting income and taxable income othan than those described above.

Required-

Prepare the appropriate journal entry to record Redfield Inc.'s 2018 income taxes. Show calculations.

Account	Debit	Credit