QUESTION 1 At the December 31, 2020 balance sheet date, Unruh Corporation reports an accrued receivable for financial reporting purposes but not for tax purposes. When this asset is recovered in 2021, a future taxable amount will occur and a. pretax financial income will exceed taxable income in 2021. b. Unruh will record a decrease in a deferred tax liability in 2021. c. total income tax expense for 2021 will exceed current tax expense for 2021. d. Unruh will record an increase in a deferred tax asset in 2021. QUESTION 2 Which of the following is a temporary difference classified as a revenue or gain that is taxable after it is recognized in financial wopme a. Subscriptions received in advance. b. Prepaid royalty received in advance. c. An installment sale accounted for on the accrual basis for financial reporting purposes and on the installment (cash) basis for tax purposes. d. Interest received on a municipal obligation. QUESTION 6 Ewing Company sells household furniture. Customers who purchase furniture on the installment basis make payments in equal monthly installments over a two-year period, with no down payment required. Ewing's gross profit on installment sales equals 40% of the selling price of the furniture. For financial accounting purposes, sales revenue is recognized at the time the sale is made. For income tax purposes, however, the installment method is used. There are no other book and income tax accounting differences, and Ewing's income tax rate is 20%. If Ewing's December 31, 2021, balance sheet includes a deferred tax liability of $900,000 arising from the difference between book and tax treatment of the installment sales, it should also include installment accounts receivable of $11,250,000. .$4,500,000