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please help! Problem 19-7 Tamarisk Corp. sold an investment on an installment basis. The total gain of $75,600 was reported for financial reporting purposes in
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Problem 19-7 Tamarisk Corp. sold an investment on an installment basis. The total gain of $75,600 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 2017, and 35% in 2018 and 2019. The 35% tax rate was not enacted in law until 2018. The accounting and tax data for the 3 years is shown below. Financial Accountin Tax Retu 2017 (40% tax rate) $88,200 Income before temporary difference Temporary difference $88,200 75,600 25,200 $163,800 $113,400 Income 2018 (35% tax rate $88,200 Income before temporary difference $88,200 Temporary difference 25,200 $88,200 $113,400 Income Income before temporary difference $88,200 $88,200 Temporary difference 25,200 88,200 $113,400 Income Calculate cumulative temporary differences for years 2017-2019. 019 2017 2018 cumulative temporary difference Calculate current tax expense for years 2017-2019. Current tax for 2017 Current tax for 2018 Current tax for 2019Step by Step Solution
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