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Blossom Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Profits
Blossom Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Profits of $ 1180000 recognized for books in 2020 will be collected in the following years: Collection of Profits $ 196000 2021 2022 $ 396000 $ 588000 2023 The enacted tax rates are: 30% for 2020,25% for 2021, and 20% for 2022 and 2023. Taxable income is expected in all future years. What amount should be included in the December 31, 2020, balance sheet for the deferred tax liability related to the above temporary difference? $ 245800 O $354000 O $49000 O $ 196800
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