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Problem #2 (20 points) The following information pertains to Sheila Companies Income Statements: 2018 2019 2020 Revenue $200,000 $100,000 $150,000 Salary Expense 75,000 50,000 50,000
Problem #2 (20 points) The following information pertains to Sheila Companies Income Statements: 2018 2019 2020 Revenue $200,000 $100,000 $150,000 Salary Expense 75,000 50,000 50,000 Depreciation Expense 10,000 10,000 10,000 Depreciation on Sheila's tax return is as follows: 2018 2019 2020 $15,000 8,000 7,000 Assume a tax rate of 30% in all years Calculate Sheila's Taxable income, Income Before Tax and prepare the year end income tax adjusting entry for 2018, 2019 and 2020
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