sale for tax purposes. Operating expenses are $120,000 for both GAAP and tax reporting. a. What is the book basis of the installment sales receivable? b. What is the tax basis of the installment sales receivable? c. Assuming a 25% tax rate, compute income tax payable, the deferred tax provision, and income tax expense for the current year. Now calculate Edgar's income tax payable for the current year. (Use parentheses or a minus sign for numbers to be subtracted.) Computation of Income Taxes Payable Taxable income Income taxes payable Computation of Income Tax Expense Income before income taxes Income tax expense