$56$:$53$

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Meyer Swift Construction Equipment Manufacturers engaged in an installment sale with one of its major customers. The firm negotiated the terms of the

installment sale for a specialized piece of equipment; full payment is required within $3$ years. We present information related to Meyer Swift's first $3$ years of operation:

What is Income Tax Expense in year $3$

$56$:$39$

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What is Income Tax Expense in year $3$

$2,457$

$525$

$2,478$

$350$

$56$:$53$

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Meyer Swift Construction Equipment Manufacturers engaged in an installment sale with one of its major customers. The firm negotiated the terms of the

installment sale for a specialized piece of equipment; full payment is required within $3$ years. We present information related to Meyer Swift's first $3$ years of operation:

$\backslash$table$[[\backslash$table$[[$Sales Account$],[$Gross profit on installment sales$],[$Taxable portion of cash collected$],[$on installment sales$]],$Year $1,$Year $2,$Year $3],[,$AAP,Tax,,AAP,Tax,GAAP,Tax$],[$$$,5,000$ $$,5,000,$$$,6,200$ $$,6,200,$$ $7,800$ $$,7,800],[$$$,3,200,0,,0,0,0,0],[,,700,,,\backslash$table$[[1,500],[(620)$