Barnes and noble purchased a car to transport their new books in 2025, the car cost 30,000. the car has a useful life of six yers with an estimated salvage value of around 3,000. the straight-line method was used for their book purposes. for their tax purposes, having a MACRS class life of six years, is classified as 5 - year property; the MACRS tax rate tables are used to compute depretiation. In addition, assume that for 2025 and 2026 the company had revenues of 300,000 and operating expenses of 200,000.

a. Prepare income statements for 2025 and 2026 under SLM(BOOK) and MACRS(TAX). Final amount on income statement should be income before income taxes.

b. compute taxable income for 2025 and 2026 under both methods

c. determine total depeciation to be taken over the useful life of the delivery truck for both book and tax purposes.