The DeVille Company reported pretax accounting income on its income statement as follows: 2018 $...

The DeVille Company reported pretax accounting income on its income statement as follows:


2018	$	360,000
2019		280,000
2020		350,000
2021		390,000

Included in the income of 2018 was an installment sale of property in the amount of $32,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $12,800 in 2019, $16,000 in 2020, and $3,200 in 2021.

Included in the 2020 income was $11,000 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.

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Expert Solution

ekkarill92 answered 1 year ago

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