Stan Co. has income before depreciation and taxes in 2015, 2016, 2017 and 2018 of $90,000. On January 1, 2015 Stan Co started business and purchased equipment for $100,000. For GAAP purposes, the equipment will be depreciated on a straight-line basis with no salvage value over four years. For tax purposes the following depreciation deduction will be allowed:

Year Amount

2015 $60,000

2016 $20,000

2017 $10,000

2018 $10,000

The tax rate in all years in forty per cent (40%)

Complete the following Table which shows the calculation of taxes payable:

Taxable Income:
			2015		2016		2017			2018
Book Income before Depreciation & Taxes			$90,000		$90,000		$90,000			$90,000
Tax Depreciation
Taxable Income
Taxes Payable

Prepare the journal entries for 2015, 2016, 2017 and 2018 to record the current and deferred income tax expense as well as any related asset or liability.

2015:

	ACCOUNT DESCRIPTION

*A = Asset, L = Liability, E = Equity, R = Revenue. X = Expense, D = Dividend

2016:

	ACCOUNT DESCRIPTION

*A = Asset, L = Liability, E = Equity, R = Revenue. X = Expense, D = Dividend

2017:

	ACCOUNT DESCRIPTION

*A = Asset, L = Liability, E = Equity, R = Revenue. X = Expense, D = Dividend

2018:

	ACCOUNT DESCRIPTION

*A = Asset, L = Liability, E = Equity, R = Revenue. X = Expense, D = Dividend