e19-16 (deferred tax liability, change in tax rate, prepare section of income statement)n) novotna inc.'s only temporary difference at the beginning and end of 2013 is caused by a $3 million deferred gain for tax purposes for an installment sale of a plant asset, and the related receivable (only one-half of which is classified as a current asset) is due in equal installments in 2014 and 2015. the related deferred tax liability at the beginning of the year is 1,200,000. in the third quarter of 2013, a new tax rate of 34% is enacted into law and is scheduled to become effective for 2015. taxable income for 2013 is 5,000,000 and taxable income is expected in all future years.