A depreciable asset was purchased 7/1/x1. The cost was $30,000. Ignore salvage value. Useful life is 6 years. The life for tax purposes is 4 years. Straight-line depreciation is used for book and tax. 20x1 pretax accounting income is $10,000. The tax rate is 40% in 20x1. The tax rate is expected to be 40% in 20x2 and 20x3 and will decline to 35% for all years after 20x3. 42. Assume no additional temporary differences occur and that each year following 20x4 pretax accounting income is $12,000. Schedule the tax consequences and record them for 20x5 - 20x7