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If gross profit on installment sales for tax purposes is less than gross profit on...

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Accounting

  1. If gross profit on installment sales for tax purposes is less than gross profit on installment sales for accounting purposes by $65,000 and the tax rate is 20%,
  1. Income tax expense would be less than income taxes to pay by 65,000 x .20
  2. Income tax expense would be greater than income tax to pay by 65,000 x .20
  3. The current portion of income taxes would be more than income tax expense by 65,000 x .20
  4. The deferred tax liability for gross profit on installment sales would decrease by 65,000 x .20

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