Question
The DeVille Company reported pretax accounting income on its income statement as follows: 2016 $ 420,000 2017 340,000 2018 410,000 2019 450,000 Included in the
The DeVille Company reported pretax accounting income on its income statement as follows: |
2016 | $ | 420,000 | |
2017 | 340,000 | ||
2018 | 410,000 | ||
2019 | 450,000 | ||
Included in the income of 2016 was an installment sale of property in the amount of $58,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $23,200 in 2017, $29,000 in 2018, and $5,800 in 2019. |
Included in the 2018 income was $24,000 interest from investments in municipal bonds. |
The enacted tax rate for 2016 and 2017 was 30%, but during 2017 new tax legislation was passed reducing the tax rate to 25% for the years 2018 and beyond. |
Required: |
Prepare the year-end journal entries to record income taxes for the years 20162019 |
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