P14-9 Calculating and recording a company's income tax The accounting records of Rhyme Timber Ltd provide income statement data for 2016: Total expenses include depreciation of $50000 calculated under the straight-line method. In calculating taxable income on the tax return, Rhyme Timber uses the reducing-balance (RB) method. RB depreciation was $80000 for 2016 . The company income tax rate is 30%. Requirements 1 Calculate taxable income for the year. 2 Prepare the journal entry in respect of income tax for 2016. 3 Show how to report income tax liabilities on Rhyme's balance sheet