Shawn's Construction sells some property on an installment basis. In these cases, Shawn reports income in its income statement in the year of the sale but reports installment income by the installment method on the tax return. Installment income in 2019 was $120 million, which Shawn expects to collect equally over the next four years. The tax rate is 30%, but based on an enacted law, is scheduled to become 40% in 2020.

Shawn's pretax accounting income for the 2019 income statement was $550 million. Of this amount, $30 million is non-taxable revenue from proceeds of a life insurance policy. There were no differences between accounting income and taxable income other than those described above and no cumulative temporary differences existed at the beginning of the year.

1. Prepare the appropriate journal entry to record Shawns 2019 income taxes. Show calculations.

2. What is Shawn's 2019 net income?