In 2022 Charmed, Inc. recorded book income of $420,000. The company's only temporary difference relates to a $54,000 installment sale that it recorded for book purposes; there are no permanent differences. Charmed anticipates receiving payments equally over the following three years. The current enacted tax rate in 2022 is 38%. The substantively enacted tax rates for the following three years are 33%, 38%, and 46%, respectively.

Under U.S. GAAP, what deferred tax amount should Charmed record for this temporary difference?

The correct answer is 20,520 How was the answer 20,520 calculated?