The accounting (not the income tax) records of Colorado Rafting, Inc., provide the following comparative income statement for 20X4 and 20X5, respectively.

Taxable income for 20X4 includes these modifications from pretax accounting income:
a. Additional taxable income of $15,000 for accounting income earned in 20X5 but taxed in 20X4.
b. Additional depreciation expense of $30,000 for MACRS tax depreciation.
The income tax rate is $40%.
Required
1. Compute Colorado Rafting's taxable income for 20X4.
2. Journalize the corporation's income taxes for 20X4.
3. Prepare the corporation's income statement for 20X4.

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20x4 20xS Total r Expenses $900,000 990,000 Cost of goods sold. Operating expenses Total expenses before tax $430,000 270,000 $460,000 280,000 740,000 Pretax accounting income.. l fs 200,000