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The Vineyard reported pretax income on its income statement as follows: Included in the income of 2024 was an installment sale of property in the

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The Vineyard reported pretax income on its income statement as follows: Included in the income of 2024 was an installment sale of property in the amount of $50,000. However, for tax purposes, Vineyard reported the income in the year cash was collected. Cash collected on the installment sale was $20,000 in 2025 , $25,000 in 2026 , and $5,000 in 2027. Included in the 2026 income was $15,000 interest from investment in municipal governmental bonds. The enacted tax rate for 2024 and 2025 was 40%, but during 2025, new tax legislation was passed reducing the tax rate to 25% for the years 2026 and beyond. When account titles are not available in the drop-down menu, please type in the cells without any drop-down menu. at the end of 2024 . Dr. (\$) Cr. (\$) Income tax expense Deferred tax liability Income tax payable Incometaxpayableattheendof2025Dr.($102,000 Income tax expense 45,000 Deferred Income Tax Asset (current) 10,000 Income tax payable 55,000 At the end of 2026 Dr. (\$) Cr. (\$) Income tax expense 80,000 Deferred Income Tax Asset (current) 15,000 Deferred Income Tax Assetinc 15,000 Income tax payable 80,000 At the end of 2027 Dr. (\$) Cr.($) Income tax expense Deferred Income Tax Liabilities (current) Income tax payable The Vineyard reported pretax income on its income statement as follows: Included in the income of 2024 was an installment sale of property in the amount of $50,000. However, for tax purposes, Vineyard reported the income in the year cash was collected. Cash collected on the installment sale was $20,000 in 2025 , $25,000 in 2026 , and $5,000 in 2027. Included in the 2026 income was $15,000 interest from investment in municipal governmental bonds. The enacted tax rate for 2024 and 2025 was 40%, but during 2025, new tax legislation was passed reducing the tax rate to 25% for the years 2026 and beyond. When account titles are not available in the drop-down menu, please type in the cells without any drop-down menu. at the end of 2024 . Dr. (\$) Cr. (\$) Income tax expense Deferred tax liability Income tax payable Incometaxpayableattheendof2025Dr.($102,000 Income tax expense 45,000 Deferred Income Tax Asset (current) 10,000 Income tax payable 55,000 At the end of 2026 Dr. (\$) Cr. (\$) Income tax expense 80,000 Deferred Income Tax Asset (current) 15,000 Deferred Income Tax Assetinc 15,000 Income tax payable 80,000 At the end of 2027 Dr. (\$) Cr.($) Income tax expense Deferred Income Tax Liabilities (current) Income tax payable

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