Return to questionitem 1item 1 10 points dixon development began operations in december 2018. when lots for industrial development are sold, dixon recognizes income for financial reporting purposes in the year of the sale. for some lots, dixon recognizes income for tax purposes when collected. income recognized for financial reporting purposes in 2018 for lots sold this way was $15 million, which will be collected over the next three years. scheduled collections for 2019–2021 are as follows: 2019 $ 5 million 2020 7 million 2021 3 million $ 15 million pretax accounting income for 2018 was $20 million. the enacted tax rate is 30%. required: 1. assuming no differences between accounting income and taxable income other than those described above, prepare the journal entry to record income taxes in 2018. 2. suppose a new tax law, revising the tax rate from 30% to 25%, beginning in 2020, is enacted in 2019, when pretax accounting income was $17 million. no 2019 lot sales qualified for the special tax treatment. prepare the appropriate journal 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 liability account at the end of 2019?

Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically, , where n represents the number of firms in a market. assume that the initial size of the u.s. and the european automobile markets are 300 million and 533 million people, respectively.a. calculate the equilibrium number of firms in the u.s. and european automobile markets without trade.b. what is the equilibrium price of automobiles in the united states and europe if the automobile industry is closed to foreign trade? c. now suppose that the united states decides on free trade in automobiles with europe. the trade agreement with the europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the united states. how many automobile firms will there be in the united states and europe combined? what will be the new equilibrium price of automobiles? d. why are prices in the united states different in (c) and (b)? are consumers better off with free trade? in what ways?