In 2018 Charmed, Inc. recorded book income of $390,000. The company's only temporary difference relates to a $66,000 installment sale that it recorded for book purposes; there are no permanent differences. Charmed anticipates receiving payments equally over the following three years. The current enacted tax rate in 2018 is 40%. The substantively enacted tax rates for the following three years are 35%, 40%, and 48%, respectively. Under U.S. GAAP, what deferred tax amount should Charmed record for this temporary difference?

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The deferred tax liability is calculated by applying the future tax rates to the temporary difference. The temporary difference is $66,000, and payments are received equally over three years. The deferred tax liability is: ($66,000/3) * 35% + ($66,000/3) * 40% + ($66,000/3) * 48% = $26,400.