Tru Developers, Inc., sells plots of land for industrial development. Tru recognizes income for financial reporting purposes in the year it. sells the plots. For some of the plots sold this year, Tru took the position that it could recognize the income for tax purposes when the instaliments are collected, Income that Tru recognized for financial reporting purposes in 2021 for plots in this category was $70 million. The company expected to collect 60% of each sale in 2022 and 40% in 2023 . This amount over the next two years is as follows: Tru's pretax accounting income for 2021 was $95 million. In its income statement. Tru reported interest income of $10 million, unrelated to the land sales, for which the company's position is that the interest is not taxable. Accordingly, the interest was not reported on the tax return. There are no differences between accounting income and taxable income other than those described above. The enacted tax rate is 40 percent. Management believes the tax position taken on the land sales has a greater than 50% chance of being upheld based on its technical merits, but the position taken on the interest has a less than 50% chance of being upheld it is further believed that the following likelihood percentages apply to the tax treatment of the land sales ( $ in millions): Required: 1. What portion of the tax benefit of tax-free interest will Tru recognize on its 2021 tax return? 2. What portion of the tax benefit of tax-free interest will Tru recognize on its 2021 financial statements? 3-a. What portion of the tax on the $70 milion income from the plots soid on an installment basis will Tru defer on its 2021 tax return? 3.b. What portion of the tax on the $70 milion income from the plots sold on an instaliment basis will Tru show as a deferred tax asset. or liability in its 2021 financial statements? 4. Prepare the joumal entry to record income taxes in 2021, assuming full recognition of the tax benefits in the financial statements of both differences between pretax accounting income and toxable income. 5. Prepare the journal entry to record income taxes in 2021, assuming the recognition of the tax benefits in the financial statements you indicated in requirements 13. Required: 1. What portion of the tax benefit of tax-free interest will Tru recognize on its 2021 tax return? 2. What portion of the tax benefit of tax-free interest will Tru recognize on its 2021 financial statements? 3-a. What portion of the tax on the $70 million income from the plots sold on an instaliment basis will Tru defer on its 2021 tax return? 3-b. What portion of the tax on the $70 million income from the plots sold on an installment basis will Tru show as a deferred tax asset. or llablity in its 2021 financial statements? 4. Prepare the joumal entry to record income taxes in 2021, assuming full recognition of the tax benefits in the financial statements of both differences befween pretax accounting income and taxable income. 5. Prepare the journal entry to record income taxes in 2021 , assuming the recognition of the tax benefits in the financial statements: you indicated in requirements 13 Complete this question by entering your answers in the tabs below. What portion of the tax benefit of tax-free interest wili Tru recognize on its 2021 tax return and financial statements? What portion of the tox on the $70 miltion income from the plots sold on an instaliment basis will Tru defer on its 2021 tax return and deferred tax asset or liability in its 2021 financial statements? (Enter your answers in millions (i.0., 10,000,000 should be entered a5 10 ).) Prepare the journal entry to record income taxes in 2021, assuming full recognition of the tax benefits in the financial statements of both differences between pretax accounting income and taxable income. (If no entry is required for a transaction/event, select "No joumal entry required in the first account fieid. Enter your answers in mililons (1.e., 10,000,000 should be entered as 10).) Show less a Journal entry worksheet Record 2021 income takes. Note: Tnter debits betore cred ts. Prepare the journal entry to record income taxes in 2021, assuming the recognition of the tax benefits in the financial statements you indicated in requirements 1-3. (If no entry is required for a transaction/event, select "No journal entry required" in the first account fieid. Enter your answers in milions (i.e., 10,000,000 should be entered as 10).) Journal entry worksheet