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Koosharem Company had pretax financial accounting income of $24,000 during 20X2. Koosharem's only temporary difference for 20X2 relates to a sale made in 20X1 and
Koosharem Company had pretax financial accounting income of $24,000 during 20X2. Koosharem's only temporary difference for 20X2 relates to a sale made in 20X1 and recognized for accounting purposes at that time. However, Koosharem uses the installment sales method of revenue recognition for tax purposes; under this method, taxable income is recognized as cash is collected. During 20X2 Koosharem collected a receivable from the 20X1 sale which resulted in $6,000 of taxable income under the installment sales method. What is Koosharem's taxable income for 20X2?
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