Indigo Corp. sold an investment on an installment basis. The total gain of $70,800 was reported for financial reporting purposes in the period of sale. The company qualifies to use the installment-sales method for tax purposes. The installment period is 3 years; one-third of the sale price is collected in the period of sale. The tax rate was 40% in 2020, and 20% in 2021 and 2022. The 20% tax rate was not enacted in law until 2021. The accounting and tax data for the 3 years is shown below. 2020 (40% tax rate) Income before temporary difference Temporary difference Income 2021 (20% tax rate) Financial Accounting Tax Return $82,600 $82,600 70,800 23,600 $153,400 $106,200 Income before temporary difference $82,600 $82,600 Temporary difference 0 23,600 Income $82,600 $106,200 2022 (20% tax rate) Income before temporary difference $82,600 $82,600 Temporary difference 0 23,600 Income $82,600 $106,200