Heiden Company reported the following net income before taxes and depreciation for the years indicated.

2016: $80,000 2017: $100,000 2018: $75,000

The Company purchased assets costing $90,000 on January 1, 2016. The assets have a three-year useful life and no salvage value. For tax purposes the Company used an acceptable accelerated depreciation method that resulted in depreciation expense of $45,000 $30,000 and$15,000 for the three years respectively. For financial reporting purposes the straight-linemethodwas used. A 30% tax rate was in effect for the three years.

Instructions: Prepare the necessary calculations and make the end of year entries for the Heiden Company for the years 2016, 2017, 2018.