2. Courts Temporary Services reported pretax accounting income in 2016, 2017,2018, and 2019 0 2 of $100 million. In 2016, an asset was acquired for $100 million. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is deducted (by MACRS) over 2016-2019 as follows: $33 million, $44 million, $15 million, and $8 million. No other depreciable assets were acquired. The enacted tax rate is 40% each year. 2017 100 2018 100 25 2019 100 25 Pre-accounting Income 100 Add: Depreciation Expense on IsS Subtract: Depreciation (33) Expense Tax Return 25 (44) (15) Taxable Income 92 110 Return 2. Courts Temporary Services reported pretax accounting income in 2016, 2017,2018, and 2019 0 2 of $100 million. In 2016, an asset was acquired for $100 million. The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). For tax purposes the asset's cost is deducted (by MACRS) over 2016-2019 as follows: $33 million, $44 million, $15 million, and $8 million. No other depreciable assets were acquired. The enacted tax rate is 40% each year. 2017 100 2018 100 25 2019 100 25 Pre-accounting Income 100 Add: Depreciation Expense on IsS Subtract: Depreciation (33) Expense Tax Return 25 (44) (15) Taxable Income 92 110 Return