Differences between the accounting methods applied to accounts and financial reports and those used in determining taxable income yielded the following amounts for the first four years of a corporation's operations:

The income tax rate for each of the four years was 35% of taxable income, and each year's taxes were promptly paid.
Instructions
1. Determine for each year the amounts described by the following captions, presenting the information in the form indicated:

2. Total the first three amount columns.

Transcribed Image Text:

First Year Second Year Fourth Year Third Year $195,000 Income before income taxes Taxable income $270,000 $300,000 $150,000 180,000