(One Temporary Diff erence, Tracked for 4 Years, One Permanent Diff erence, Change in Rate) The pretax fi nancial income of Truttman Company diff ers from its taxable income throughout each of 4 years as follows. Pretax Taxable Year Financial Income Income Tax Rate 2020 $290,000 $180,000 35% 2021 320,000 225,000 20 2022 350,000 260,000 20 2023 420,000 560,000 20 Problems 19-53 Pretax fi nancial income for each year includes a nondeductible expense of $30,000 (never deductible for tax purposes). The remainder of the diff erence between pretax fi nancial income and taxable income in each period is due to one depreciation temporary diff erence. No deferred income taxes existed at the beginning of 2020.