A) compute income before taxes for 2017 and 2018

B) compute taxable income for 2017 and 2018

C) determine the total depreciation to b taken over the useful life of the delivery truck for both book and tax purposes

Exercise 11-25 (Part Level Submission) Larkspur Enterprises purchased a delivery truck on January 1, 2017, at a cost of $30,510. The truck has a useful life of 7 years with an estimated salvage value of $6,780. The straight- line method is used for book purposes. For tax purposes, the truck, having an MACRS class life of 7 years, is dass ed as s year property the optional MACRS tax rate tables are used to compute depreciation. In addition, assume that for 2017 and 2018 the company has revenues of $226,000 and opereting expenses (exciuding depreciation) of $146,90. MACRS Depreciation Rates by Class of Property 7-year 10-year 10.00 18.00 14.40 11.52 15-year -(150%De)-_1150%De) 5-year (200% DB) (200% Da) (200%DB) - 14.29 24.29 17.49 12.49 DB) 33.33 44.45 14.81 .41 20.00 32.00 19.20 7.219 6.677 9.50 7.70 5.713 5.285 4.888 4.522 4.462 4.461 4.462 4.461 4.462 4.461 4.462 4.461 8.93 8.92 8.93 4.46 6.93 11.52 S.76 6.55 6.55 6.56 6.55 3.28 5.90 5.90 5.91 5.90 5.90 5.91 5.90 5.91 2.95 4.461