P18.2 (LO 1, 2) (One Temporary Difference, Tracked for 4 Years, One Permanent Difference, Change in Rate) The pretax financial income of Truttman AG differs from its taxable income throughout each of 4 years as follows.

Year Pretax Financial Income Taxable Income Tax Rate 2025 €290,000 €180,000 35%

2026 320,000 225,000 40%

2027 350,000 260,000 40%

2028 420,000 560,000 40%

Pretax financial income for each year includes a non-deductible expense of €30,000 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2025.