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Crosley Corp. sold an investment on an installment basis. The total gain of $168,000 was reported for financial reporting purposes in the period of sale. The company qualifies to use the installment-sales method for tax purposes. The installment period is 3 years; one-third of the sale price is collected in the period of sale. The tax rate was 40% in 2014, and 35% in 2015 and 2016. The 35% tax rate was not enacted in law until 2015. The accounting and tax data for the 3 years is shown below. Financial Accounting Tax Return 2014 (40% tax rate) Income before temporary difference $196,000 $196,000 Temporary difference 168,000 56,000 Income $364,000 $252,000 2015 (35% tax rate) Income before temporary difference $196,000 $196,000 Temporary difference 0 56,000 Income $196,000 $252,000 2016 (35% tax rate) Income before temporary difference $196,000 $196,000 Temporary difference 0 56,000 Income $196,000 $252,000 Collapse question part (a1) Calculate cumulative temporary differences for years 2014-2016. 2014 2015 2016 Cumulative temporary difference $ $ $ Calculate current tax expense for years 2014-2016. Current tax for 2014 $ Current tax for 2015 $ Current tax for 2016 $ Calculate deferred tax expense for 2014-2016. Deferred tax for 2014 $ Deferred tax for 2015 $ Deferred tax for 2016 $ Click if you would like to Show Work for this question:

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