The Delancey Dept store sells merchandise on the installment basis. The selling price of its merchandise is $500 and its cost is $325. At the end of the fiscal year the accounts were: Sales (installment): $500,000

Installment accounts receiveable: 280,000

Sales comissions: 15,000

Other expenses: 32,000

The net income for the fiscal year before taxes using the installment method is:

The balance in the deferred income account at the end of the fiscal year is: