Tamarisk Enterprises purchased a delivery truck on January 1, 2020, at a cost of $35,000. The truck has a useful life of 7 years with an estimated salvage value of $5,040. The straight-line method is used for book purposes. For tax purposes, the truck, having an MACRS class life of 7 years, is classified as 5-year property; the optional MACRS tax rate tables are used to compute depreciation. In addition, assume that for 2020 and 2021 the company has revenues of $246,000 and operating expenses (excluding depreciation) of $159,900. MACRS Depreciation Rates by Class of Property Recovery Year 3-year (200% DB) 5-year (200% DB) 7-year (200% DB) 10-year (200% DB) 15-year (150% DB) 20-year (150% DB) 1 33.33 20.00 14.29 10.00 5.00 3.750 2 44.45 32.00 24.29 18.00 9.50 7.219 3 14.81* 19.20 17.49 14.40 8.55 6.677 4 7.41 11.52* 12.49 11.52 7.70 6.177 5 11.52 8.93* 9.22 6.93 5.713 6 5.76 8.92 7.37 6.23 5.285 7 8.93 6.55* 5.90* 4.888 8 4.46 6.55 5.90 4.522 9 6.56 5.91 4.462* 10 6.55 5.90 4.461 11 3.28 5.91 4.462 12 5.90 4.461 13 5.91 4.462 14 5.90 4.461 15 5.91 4.462 16 2.95 4.461 17 4.462 18 4.461 19 4.462 20 4.461 21 2.231 *Switchover to straight-line depreciation.

Compute income before income taxes for 2020 and 2021. 2020 2021 Income before income taxes $enter a dollar amount $enter a dollar amount

Compute taxable income for 2020 and 2021. (Round answers to 0 decimal places, e.g. 45,892.) Taxable income for 2020 $enter taxable income for 2017 in dollars rounded to 0 decimal places Taxable income for 2021 $enter taxable income for 2018 in dollars rounded to 0 decimal places

Determine the total depreciation to be taken over the useful life of the delivery truck for both book and tax purposes. Book purposes $enter a dollar amount Tax purposes $enter a dollar amount