Question 1 of 1 - 120 E View Policies Current Attempt in Progress Larkspur Corp. sold an investment on an installment basis. The total gain of $67,200 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, Financial Accounting Tax Return 2020 (40% tax rate) Income before temporary difference $78.400 $78,400 67,200 22.400 Temporary difference $145,600 $100,800 Income 2021 (20% tax rate) $78.400 S78410 Income before temporar difference Question 1 of 1 2021 (20% tax rate) Income before temporary difference $78,400 $78,400 Temporary difference 0 22,400 Income $78,400 $100,800 2022 (20% tax rate) Income before temporary difference $78,400 $78,400 Temporary difference 0 22,400 Income $78,400 $100,800 Question 1 of 1 - 120 E Calculate cumulative temporary differences for years 2020-2022. (Negotive amounts using either a negative sin preceding the number eg.-45 or parentheses eg (451) 2020 2021 2022 Cumulative temporary difference $ $ Calculate current tax expense for years 2020-2022. Current tax for 2020 $ Current tax for 2021 Current tax for 2022 -uestion 1 of 1 Calculate deferred tax expense for 2020-2022 Deferred tax for 2020 Deferred tax for 2021 $ Deferred tax for 2022 $ List of Accounts Save for Later