Differences between the accounting methods applied to accounts and financial reports and those used in determining taxable income yielded the following amounts for the first four years of a corporation's operations:

The income tax rate for each of the four years was 40% of taxable income, and each year's taxes were promptly paid.
Instructions
1. Determine for each year the amounts described by the following captions, presenting the information in the form indicated:

2. Total the first three amountcolumns.

Transcribed Image Text:

Third Year First Year Second Fourth Year Year Income before income taxes Taxable income S625,000 $750,000 $1,250,000 $1,000,000 700,000