In 2018,TPC Inc

Multiple Choice

In 2018,TPC Inc.sold investment land with a $388,000 book and tax basis for $523,000.The purchaser paid $60,000 in cash and gave TPC a note for the $463,000 balance of the price.In 2019,TPC received a $67,800 payment on the note ($40,000 principal + $27,800 interest) .In 2019,TPC's use of the installment sale method results in a:

A) $10,325 favorable permanent book/tax difference
B) $17,496 unfavorable temporary difference
C) $17,496 favorable temporary difference
D) None of the above