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Sheridan Co. at the end of 2021, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax
Sheridan Co. at the end of 2021, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income Extra depreciation taken for tax purposes Estimated expenses deductible for taxes when paid Taxable income $400,000 (1,008,000) 870,000 $262.000 Use of the depreciable assets will result in taxable amounts of $336,000 in each of the next three years. The estimated litigation expenses of $870,000 will be deductible in 2024 when settlement is expected. (a) Prepare a schedule of future taxable and deductible amounts. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) 2022 2023 2024 Future taxable (deductible) amounts Extra depreciation $ $ $ Litigation
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