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Prepare the income tax expense section of the income statement for 2025, beginning with the line Income before income taxes. (Enter negative amounts using
Prepare the income tax expense section of the income statement for 2025, beginning with the line "Income before income taxes." (Enter negative amounts using either a negative sign preceding the number eg.-45 or parentheses e.g. (45).) SHERIDAN COMPANY Income Statement (Partial) For the Year Ended December 31, 2025 Income before Income Taxes Income Tax Expense- Current Deferred Net Income/(Loss) 35960 10560 73600 Sheridan Company reports pretax financial income of $73,600 for 2025. The following items cause taxable income to be different than pretax financial income. 1. 2. 3. Depreciation on the tax return is greater than depreciation on the income statement by $17.600. Rent collected on the tax return is greater than rent recognized on the income statement by $23,600. Fines for pollution appear as an expense of $10,300 on the income statement. Sheridan's tax rate is 40% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2025.
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