Murphy Company purchased equipment for $450,000 on January 2, 2017, its first day of operations. For book purposes, the equipment will be depreciated using the straight-line method over three years with no salvage value. Pretax financial income and taxable income are as follows:

2017 2018 2019

Pretax financial income

$241,000 $262,000 $302,000

Taxable income

196,000 262,000 347,000

The temporary difference between pretax financial income and taxable income is due to the use of accelerated depreciation for tax purposes.