ABC Inc.’s revenue and costs for the current year were the following:

Revenue ............ $500,000

Cost of sales .......... 300,000

Gross profit ...........200,000

Operating expenses .......100,000

The company’s statement of financial position shows the gross value of non-current assets as $100,000. The company’s straight-line depreciation rate for the asset is 15%, and the CCA rate is 30%. The company’s income tax rate is 50%.

1. Calculate the company’s future income taxes payable during the first five years.

2. Prepare the statement of income by using year two of the CCA and depreciation rates. Assume the same operating results as the current year.