Income Statement for the period 1/1/2022 - 12/31/2022 Net sales 20,000,000 Cost of sales 12,000,000 Gross...

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Income Statement for the period 1/1/2022 - 12/31/2022 Net sales 20,000,000 Cost of sales 12,000,000 Gross profit 8,000,000 Compensation 500,000 Selling expenses 750,000 Depreciation and amortization 1,250,000 Other expenses 1,000,000 Total operating expenses 3,500,000 Income from operations 4,500,000 Interest and other income 25,000 Income before income taxes 4,475,000 2022 Permanent Difference Schedule Interest income from municipal bonds Nondeductible stock compensation Nondeductible fines 10,000 5,000 1,000 Temporary Difference Schedule BOY Current Taxable Deferred Temporary Differences Taxes Year Change EOY Cumulative T/D EOY Deferred Taxes Accumulated depreciation (1,050,000) (500,000) (5,500,000) (1,155,000) BOY Current Deductible Deferred Year EOY Cumulative Temporary Differences Taxes Change T/D EOY Deferred Taxes Allowance for bad debts. 21,000 10,000 110,000 23,100 Prepaid income 0 20,000 20,000 4,200 Deferred compensation 10,500 10,000 60,000 12,600 Accrued pension liabilities Total 105,000 100,000 600,000 126,000 136,500 140,000 790,000 165,900 Income Statement for the period 1/1/2022 - 12/31/2022 Net sales 20,000,000 Cost of sales 12,000,000 Gross profit 8,000,000 Compensation 500,000 Selling expenses 750,000 Depreciation and amortization 1,250,000 Other expenses 1,000,000 Total operating expenses 3,500,000 Income from operations 4,500,000 Interest and other income 25,000 Income before income taxes 4,475,000 2022 Permanent Difference Schedule Interest income from municipal bonds Nondeductible stock compensation Nondeductible fines 10,000 5,000 1,000 Temporary Difference Schedule BOY Current Taxable Deferred Temporary Differences Taxes Year Change EOY Cumulative T/D EOY Deferred Taxes Accumulated depreciation (1,050,000) (500,000) (5,500,000) (1,155,000) BOY Current Deductible Deferred Year EOY Cumulative Temporary Differences Taxes Change T/D EOY Deferred Taxes Allowance for bad debts. 21,000 10,000 110,000 23,100 Prepaid income 0 20,000 20,000 4,200 Deferred compensation 10,500 10,000 60,000 12,600 Accrued pension liabilities Total 105,000 100,000 600,000 126,000 136,500 140,000 790,000 165,900