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Carla Vista, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes.

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Carla Vista, Inc. uses the accrual method of accounting for financial reporting purposes and appropriately uses the installment method of accounting for income tax purposes. Installment income of $2750000 will be collected in the following years when the enacted tax rates are: 2020 2021 2022 2023 Collection of Income $250000 550000 855000 1095000 Enacted Tax Rates 25% 20% 20% 15% The installment income is Carla Vista's only temporary difference. What amount should be included in the deferred income tax liability in Carla Vista's December 31, 2020 balance sheet? $445250 $542750 $625000 O $687500

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