Exercise 19-08

Blue Company has the following two temporary differences between its income tax expense and income taxes payable.

2020

2021

2022

Pretax financial income$864,000

$949,000

$920,000

Excess depreciation expense on tax return(30,800

)

(41,000

)

(9,600

)

Excess warranty expense in financial income20,900

10,500

8,300

Taxable income$854,100

$918,500

$918,700

The income tax rate for all years is 20%.