E 16-13 Multiple differences calculate taxable accounting income for 2018 was $300,000, which includes interest revenue of $40,000 from municipal bad income Southern Atlantic Distributors began operations in January 2018 and purchased a delivery truck for $40.0 Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial re ing purposes. For tax purposes, the deduction is 50% of cost in 2018, 30% in 2019, and 20% in 2020. Pm The enacted tax rate is 40%. Required: Assuming no differences between accounting income and taxable income other than those described above 1. Prepare the journal entry to record income taxes in 2018. 2. What is Southern Atlantic's 2018 net income? L016-1, LO16-4, LO16-6