Exercise

$7/1/$x$1-$ Purchased depreciable asset

Cost $$30,000$

Ignore Salvage Value

Useful Life $6$ years

Tax life $4$ years

Straight$-$line depreciation $-b$

Pretax AI $$10,000$

Tax Rate $,40\%201$

$35\%$ after $203$

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 $205-207.$