Hunter Company purchased a light truck on January 2, 2016 for $18,000. The truck, which will be used for deliveries, has the following characteristics:

Estimated life: 5 years

Estimated residual value: $3,000

Depreciation for financial statements: straight-line

Depreciation for income tax purposes: MACRS (3-year-life)

From 2016 through 2020, each year, Hunter had sales of $100,000, cost of goods sold of $60,000, and operating expenses (excluding depreciation) of $15,000. The truck was disposed of on December 31, 2020, for $2,000.

Required:

If required, round answers to the nearest dollar.

1. Prepare an income statement for financial reporting through pretax accounting income for each of the 5 years, 2016 through 2020.

If an amount is zero, enter "0".

HUNTER COMPANY
Income Statement: Pretax (partial)
For the years ended 2016 - 2020
	2016	2017	2018	2019	2020
Sales	$	$	$	$	$
Cost of goods sold
Gross profit	$	$	$	$	$
Operating expenses
Depreciation expense
Loss on disposal
Pretax accounting income	$	$	$	$	$

2. Prepare, instead, an income statement for income tax purposes through taxable income for each of the 5 years, 2016 through 2020. Refer MACRS Depreciation Schedule to answer the following question.

Round your answers to the nearest dollar. If an amount is zero, enter "0".

HUNTER COMPANY
Income Statement: Taxable income (partial)
For the years ended 2016 - 2020
	2016	2017	2018	2019	2020
Sales	$	$	$	$	$
Cost of goods sold
Gross profit	$	$	$	$	$
Operating expenses
Depreciation expense
Gain on disposal
Taxable income	$	$	$	$	$