Meg's bakery buys a large industrial mixing machine for $60,000 on the first day of its accounting and tax year. For accounting ("book" or "GAAP") purposes it accounts for depreciation using the usage method. It assumes the machine will be used for 60.000 hours at the end of which time it will be valueless. However for tax purposes the bakery is allowed to depreciate the entire amount in the first year, so "tax" depreciation expense in the first year will be equal to the initial cost o equipment. The profit before depreciation for both GAAP and tax purposes in each of year 1 and year 2 is $120,000. The machine is used for 20,000 hours in year 1 and 40,000 hours in year 2. The tax rate is 25% in both years. a. What is the "book" depreciation expense in year 1? b. What is the "book" income before taxes in year 1? c. What is the "book" tax expense in year 1? d. What is the "tax" depreciation expense in year 1? e. What is the "tax" depreciation expense in year 2? f. What is the "taxable income" (i.e. tax purposes) in year 1? g. What is the "taxable income" (i.e. tax purposes) in year 2? h. How much tax is the company required to pay in year 1? i. If there is a difference between the "book" tax expense and the taxes payable what is the name of the account where this is recorded? j. Where can the amount of cash paid for taxes be found in a company's reports