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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

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 Sheilas tax return is as follows: 2018 $15,000 2019 8,000 2020 7,000 Assume a tax rate of 30% in all years Calculate Sheilas Taxable Income, Income Before Tax and prepare the year end income tax adjusting entry for 2018, 2019 and 2020.

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