Question: Refer to the facts in the preceding problem and assume

Refer to the facts in the preceding problem and assume that TPW uses the installment sale method of accounting.
a. Compute the difference between TPW’s book and tax income resulting from the installment sale method.
b. Is this difference favorable or unfavorable?
c. Using a 35 percent tax rate, compute PTR’s deferred tax asset or liability (identify which) resulting from the book/tax difference.

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  • CreatedNovember 03, 2015
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