On January 1, Year 1, the Dole Company purchased an asset that cost $154,000. The asset had an expected useful life of seven years and no estimated residual value. The company ally decided to use sum-of-the-years-digits (SYD) depreciation for both financial accounting and income tax purposes. Depreciation expense for the straight-line method and the sum-of- the-years digits method is as follows Year Straight line over 7 Years SYD over 7 Years Difference T $22.000 $38.500 $16,500 2 22.000 33.000 11.000 3 22.000 27.500 5.500 4 22.000 22.000 5 22.000 16.500 (5.500) 6 22.000 11,000 (11,000 7 22.000 5.500 $154.000 $154,000 (16.500) 30 At the beginning of Year & Dele changed bom the sum-of-the-years-dighs method to the straight-line method of depreciation for financial reporting purposes. The company's income tax 30% in Year 3 and Year 4 Dole had 590,000 pretas income before depreciation and income taxes Required: a. Complete the following section of the income statement b. Prepare the journal entries to record the depreciation expense, tax expense, and the effect of the accounting change (if any) in Year 4 structions Income Statement a. Complete the following section of the income statement Income Statement Instructions Year 3 Year 4 Pretax income before depreciation $90,000 $90,000 Depreciation expense Income before income taxes S S Income tax expense Net income S S Shaded cells have fe Points: 0/8 Home Statement General Journal How does grading work? ACCOUNT TITLE DATE Jan. 1 Depreciation Expense Accumulated Depreciation 2 D 3 Dec. 31 Deferred Tax Asset + In Deferred Tax Liability In $ Cash 25 N Shaded cells have feedback Shaded cells have feedback PAGE 1 GENERAL JOURNAL Score: 27/63 POST. REF. DEBIT CREDIT Points 5.14/12