Shupan Inc. sometimes sells property on an installment basis. In those cases, Shupan reports income in its income statement in the year of the sale but reports installment income by the installment method (when cash is received) on the tax return. Installment income in 2021 was $160 million, which Shupan expects to collect equally over the next four years. The tax rate is 25%, but based on an enacted law, is scheduled to become 35% in 2023. Shupan's pretax accounting income for the 2021 income statement was $570 million. Of this amount, $38 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. Required: 1. Prepare the appropriate journal entry to record Shupan's 2021 income taxes. 2. What is Shupan's 2021 net income? Complete this question by entering your answers in the tabs below. Prepare the appropriate journal entry to record Patterson's 2021 income taxes. (If no entry is required for a transaction/event, select "No joumal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2. decimal piaces (1.e, 5,500,000 should be entered as 5.50).) Journal entry worksheet Prepare the appropriate journal entry to record Patterson's 2021 income taxes. (If no entry is required for a transaction/event, select " No journal entry required in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) Journal entry worksheet Note: Enter debits before credits, Shupan inc, sometimes sells property on an installment basis. In those cases, Shupan reports income in its income statement in the year of the sale but reports installment income by the installment method (when cash is recelved) on the tax return. Installment income in 2021 was $160 million, which Shupan expects to collect equally over the next four years. The tax rate is 25%, but based on an enacted law, is scheduled to become 35% in 2023. Shupan's pretax accounting income for the 2021 income statement was $570 million. Of this amount, $38 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. Required: 1. Prepare the appropriate joumal entry to record Shupan's 2021 income taxes. 2. What is Shupan's 2021 net income? Complete this question by entering your answers in the tabs below. What is Patterson's 2021 net income? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places (1.e.5,500,000 should be entered as 5.50 )
