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The DeVille Company reported pretax accounting income on its income statement as follows: 2015 2019 5355,000 275,000 345,000 385.000 Included in the income of 2018
The DeVille Company reported pretax accounting income on its income statement as follows: 2015 2019 5355,000 275,000 345,000 385.000 Included in the income of 2018 was an installment sale of property in the amount of $30,000. However, for tax purposes, Deville reported the income in the year cash was collected. Cash collected on the installment sale was $12.000 in 2019. $15.000 in 2020, and $3,000 in 2021 Included in the 2020 income was $10,000 Interest from investments in municipal bonds The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new tax legislation was passed reducing the tax rate to 25% for the years 2020 and beyond. Required: Prepare the year-end journal entries to record income taxes for the years 2018-2021 (If no entry is required for a transaction/event, select "No Journal entry required in the first account field.) Answer is complete but not entirely correct. No Date General Journal Credit Debit 106,500 1 Dec 31, 2018 income tax expense Deferred tax liability 0,000 ere to search O RL e so select "No journal entry required" in the first account field.) Answer is complete but not entirely correct. No Date Dec 31, 2018 General Journal Debit 106,500 Credit Income tax expense Deferred tax liability Income tax payable 9,000 97,500 Dec 31, 2019 Income tax expense Deferred tax liability Income tax payable 82,500 x 3,600 86,100 Dec 31, 2020 Income tax expense Deferred tax liability Income tax payable 84,650 X 2,850 % 87,500 Dec 31, 2021 Income tax expense 96,250 750 Deferred lax liability Income tax payable 97,000
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