TPW, a calendar year taxpayer, sold land with a $546,000 tax basis for $805,000 in February. The purchaser paid $86,000 cash at closing and gave TPW an interest-bearing note for the $719,000 remaining price. In August, TPW received a $59,550 payment from the purchaser consisting of a $35,950 principal payment and a $23,600 interest payment. Assume that TPW uses the installment sale method of accounting. Required: Compute the difference between TPWs book and tax income resulting from the installment sale method. Is this difference favorable or unfavorable? Using a 21 percent tax rate, compute PTRs deferred tax asset or liability (identify which) resulting from the book/tax difference.

TPW, a calendar year taxpayer, sold land with a $546,000 tax basis for $805,000 in February. The purchaser paid $86,000 cash at closing and gave TPW an interest-bearing note for the $719,000 remaining price. In August, TPW received a $59,550 payment from the purchaser consisting of a $35,950 principal payment and a $23,600 interest payment. Assume that TPW uses the installment sale method of accounting. Required: a. Compute the difference between TPW's book and tax income resulting from the installment sale method. b. Is this difference favorable or unfavorable? c. Using a 21 percent tax rate, compute PTR's deferred tax asset or liability (identify which) resulting from the book/tax difference. Complete this question by entering your answers in the tabs below. Compute the difference between TPW's book and tax income resulting from the installment sale method. Note: Round gross profit percentage to 2 decimal places, and intermediate calculations to the nearest whole dollar amount. Round your final answer to nearest whole dollar amount