Gustav, Inc. uses the accrual basis to account for all sales transactions. Sales for 2015 total $500,000. Included in this amount is $75,000 in receivables from sales on installment. Installment sales are considered revenue for book purposes, but not for tax purposes. Operating expenses total $150,000 and are treated the same for book and tax purposes.

Complete the following:

a. What is the book basis of the installment sales receivable?

b. What is the tax basis of the installment sales receivable?

c. Assuming a 30% tax rate, compute income tax expense, the deferred tax provision, and income tax payable for 2015.

d. Prepare the journal entry to record the 2015 income tax expense.