EX 19-8 NEED CALCULATIONS AND ANSWERS TO ALL RED BOXES

Exercise 19-8 Button Company has the following two temporary differences between its income tax expense and income taxes payable. 2014 2015 2016 Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income $860,200 $911,200 $954,000 (39,200) (50,400) (27,000) 8,520 $846,600 $874,140 $935,520 25,600 13,340 The income tax rate for all years is 40%