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 35% 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:

Second Year Third Year First Year $50,000 35,000 Fourth Year Income before income taxes Taxable income $65,000 60,000 590,000 100,000 98,000 112,000 Deferred Income Income Tax Deducted on Income Tax Payable Income Tax Payments for the Year Year's Addition (Deduction) Year- End Balance Year Statement