The pretax financial income of Truttman AG differs from its taxable income throughout each of 4 years as follows.

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 2018.
Instructions
a. Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 40% was not enacted until the beginning of 2019.
b. Prepare the income statement for 2019, beginning with income before income taxes.

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Year Pretax Financial Income Taxable Income Tax Rate €290,000 35% 2018 €180,000 225,000 2019 40% 320,000 40% 2020 350,000 260,000 2021 40% 420,000 560,000