For the current year the income statement reported $36,000 of pretax financial Income. All the temporary and permanent differences to complete a reconciliation of pretax financial income to taxable income appear below. Pretax financial income Royalty income. Bad debt expense Dividends-received deduction Taxable income What is the amount of taxable income? O $3,840 O $4,160 O $3,040 $2,560 $3,600 400 640 800 ? A company first year of operations began on January 1. Year 1. The company recognizes revenues from all sales under the accrual method for financial reporting purposes and appropriately uses the installment method for income tax purposes. Duff's gross margin on installment sales under each method was as follows: Year Year 1 Year 2 Accrual Method Installment Method $32,000 52,000 $ 12,000 28,000 There are no other temporary differences. Enacted income tax rates are 25% for Year 2 and 20% thereafter. In the December 31, Year 2 balance sheet, the deferred income tax liability should be: O $8,800 O $11,000 O $4,800 $6,000