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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.
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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