TPW$,$ a calendar year taxpayer, sold land with a $$535,000$ tax basis for $$750,000$ in February. The purchaser paid $$75,000$ cash at closing and gave TPW an interest$-$bearing note for the $$675,000$ remaining price. In August, TPW received a $$55,950$ payment from the purchaser consisting of a $$33,750$ principal payment and a $$22,200$ interest payment. Assume that TPW uses the installment sale method of accounting.

Required:

Compute the difference between TPW$$s book and tax income resulting from the installment sale method.

Is this difference favorable or unfavorable?

Using a $21$ percent tax rate, compute PTR$$s deferred tax asset or liability $($identify which$)$ resulting from the book$/$tax difference.