Q3: Accounting for Income Taxes Homework Unanswered 3. Meder Corp. uses the option to recognize installment sales of real property as taxable as the installment payments are collected. During 2018, installment sales of real property totaled $12,500. The beginning balance in notes receivable related to real property installment sales was $123,400 while the ending balance in that account was $126,300. What is the difference between pretax accounting income and taxable income based on this information? O A Taxable is $ 12,500 lower than pretax accounting income o B Taxable is $ 12,500 higher than pretax accounting income o C Taxable is $ 2,900 lower than pretax accounting income 0 D Taxable is $ 2,900 higher than pretax accounting income o E Not enough information to determine For ABC Corp, Pretax accounting income in FY 2019 is $3,700. Part of that is from municipal bond interest ($2,000 bond paying 8%). ABC chooses to consider real estate installments sales as taxable when payments are collected, per IRS code. Book depreciation was $ 425 but MACRS under the tax code is $ 615 for the year. The balance in the estimated warranty liability account declined by $ 330 during 2019. They collected $2,000 payments on installment note related to real estate sales while making $ 1,700 of real property sales on installment notes in 2019. The company's statutory tax rate is 30%; as of 1/1/2019 DTA had a 19 balance while DTL had a 124 balance. What is ABC Corp's Taxes expense for 2019? O A $957 B $ 996 C $1,110 oooo D $989 E $ 1,506