2020	2021
Sales Revenue		500,000	500,000
Fixed Asset Purchase - 3 year life for
book depreciation, 5 year life for
tax depreciation (Straight line)		40,000	50,000
Tax-Exempt Income		15,000	14,000
Entertainment Expenses		10,000	5,000
Advertising Expenses		40,000	40,000
Wage expenses		200,000	220,000
Income Tax Rate		10%	10%
(a) Calculate book income for 2020 (3 points)
(b) Calculate taxable income for 2020 (3 points)
(c) Make the required journal entries for the 2020 financial statements (6 points)
(d) Calculate the book income for 2021 (3 points)
(e) Calculate taxable income for 2021 (3 points)
(d) Make the required book journal entries for the 2021 financial statements (7 points)