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closing and gave TPW an interest-bearing note for the $765,000 remaining price. In August, TPW received a $61,250 payment from the purchaser consisting of a

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closing and gave TPW an interest-bearing note for the $765,000 remaining price. In August, TPW received a $61,250 payment from the purchaser consisting of a $38,250 principal payment and a $23,000 interest payment. In the first year after the year of sale, TPW received payments totaling $117,500 from the purchaser. The total consisted of $76,500 principal payments and $41,000 interest payments. Required: a. For the first year after the year of sale, compute the difference between TPW's book and tax income resulting from the instaliment sale method. b. Is this difference favorable or unfavorable? c. Using a 21 percent tax rate, determine the effect of the difference on the deferred tax asset or liablity generated in the year of sale. Complete this question by entering your answers in the tabs below. For the first year after the year of sale, compute the difference between TPW's book and tax income resulting from the instaliment sale method. Note: Round gross profit percentage to 2 decimal places and final answer to the nearest whole dollar amount. closing and gave TPW an interest-bearing note for the $765,000 remaining price. In August, TPW received a $61,250 payment from the purchaser consisting of a $38,250 principal payment and a $23,000 interest payment. In the first year after the year of sale, TPW received payments totaling $117,500 from the purchaser. The total consisted of $76,500 principal payments and $41,000 interest payments. Required: a. For the first year after the year of sale, compute the difference between TPW's book and tax income resulting from the instaliment sale method. b. Is this difference favorable or unfavorable? c. Using a 21 percent tax rate, determine the effect of the difference on the deferred tax asset or liablity generated in the year of sale. Complete this question by entering your answers in the tabs below. For the first year after the year of sale, compute the difference between TPW's book and tax income resulting from the instaliment sale method. Note: Round gross profit percentage to 2 decimal places and final answer to the nearest whole dollar amount

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