Oriole Inc. sells household furniture on an instalment basis. Customers make payments in equal monthly instalments over a two-year period, with no down payment required. Oriole's gross profit on instalment sales is 40% of the selling price. For book purposes, sales revenue is recognized at the time the sale is made. For income tax purposes, however, the instalment method is used. There are no other accounting and income tax accounting differences, and Oriole's income tax rate is 30%. If Oriole's December 31, 2023, SFP includes a deferred tax liability of $91500 arising from the difference between accounting and tax treatment of the instalment sales, it should also include instalment accounts receivable of  $91500.  What is the net value if income tax rate?

Answer rating: 100% (QA)

To determine the net value of the income tax rate in this scenario we can use the information provid... View the full answer