Dixon development began operations in december 2018. when lots for industrial development are sold, dixon recognizesincome for financial reporting purposes in the year of the sale. for some lots, dixon recognizes income for tax purposeswhen collected. income recognized for financial reporting purposes in 2018 for lots sold this way was 512 million, whichwill be collected over the next three years. scheduled collections for 2019—2021 are as follows: 2019 s anion2020 5 lionm1 3 lion$12 i"pretax accounting income for 2018 was $16 million. the enacted tax rate is 40%.required: 1. assuming no differences between accounting income and taxable income otherthan those described above, preparethe journal entry to record income taxes in 2018.2 suppose a new tax law, revising the tax rate from 40% to 35%, beginning in 2020, is enacted in 2019, when pretaxaccounting income was 515 million. no 2019 lot sales qualified for the special tax treatment. prepare the appropriatejournal entry to record income taxes in 2019.3. if the new tax rate had not been enacted, what would have been the appropriate balance in the deferred tax liabilityaccount at the end of 2019? why?