ACC 302 - Deferred Taxes- Activity 4 A depreciable asset was purchased 7/1/1. 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. 201 pretax accounting income is $10,000. The tax rate is 40% in 201. The tax rate is expected to be 40% in 202 and 203 and will decline to 35% for all years after 203. Complete this activity at home and turn it in next class period. 42. Assume no additional temporary differences occur and that each year following 204 pretax accounting income is $12,000. Schedule the tax consequences and record them for 205207