GAAP/Tax Income Statement For Year Ended December 31, 2011 Revenue 810,524 Operating Expenses 647,578 Net Income 162,946 The following fixed assets were purchased during the year: Date Cost Salvage GAAP Depr Office Furniture 6/1/2011 22,000 1,000 6,417 Machinery 12/1/2011 32,000 2,500 762 Tax Depr 3,927 1,600 Year 2011 2012 There was a 12-month insurance policy bought for $15,000 on 12/1/2011 and for tax purposes, the entire policy is expensed. There were $4,500 worth of meals purchased during the year of 2011 Create the burnal entries for the above transactions for both GAAP and Tax. Depreciation is only recorded once a year at the end of the year. Create the 2011 year-end income statements for both GAAP and tax using all of the above information (check figure: GAAP net income before taxes: 150,017) (check figure: tax net income: 140,169)