A company is in the process of scheduling temporary differences for year 3. The company has found that some temporary differences accumulate over several years and then eliminate over several years. The company is not sure how such temporary differences should be scheduled over future years and has hired you for assistance. For purposes of explanation, the company has provided you with the following temporary differences related to depreciable assets.

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Books Tax Differenc e Year 1 $45,000 $72,000 $(27,000) Year 2 45,000 115,200 (70,200) Future Years Year 3 45,000 69,120 (24,120) Year 4 45,000 41,400 3,600 Year 5 45,000 41,400 3,600