EX 19-18 NEED CALCULATIONS AND ANSWERS TO ALL RED BOXES INCLUDING ACCOUNT NAMES

Exercise 19-18 During 2014, Kate Holmes Co.'s first year of operations, the company reports pretax financial income at $269,500. Holmes's enacted tax rate is 45% for 2014 and 40% for all later years. Holmes expects to have taxable income in each of the next 5 years. The effects on future tax returns of temporary differences existing at December 31, 2014, are summarized as follows. e. Future Years 2015 2016 2017 2018 2019 Total Future taxable (deductible) amounts: Installment sales Depreciation Unearned rent $144,600 8,100 8,100 8,100 $8,100 $8,100 40,500 $48,200 $48,200 $48,200 (57,200) (57,200) (114,400)