The pretax financial income of T Company differs from its taxable income throughout each of 4 years as follows. Pretax Year Financial Taxable Income Income Tax Rate 2017 $290000 $180000 35% 2018 320000 225000 40 2019 350000 260000 40 2020 420000 560000 40

The difference between pretax financial income and taxable income in each period is due to a temporary diffence related to depreciation. No deferred income taxes existed at the beginning of 2017. Required: a) Prepare journal entries to record income taxes in all 4 years. Navigate to appropriate sections of the Accounting Standards Codification (ASC) to identify answers to the following questions. a) the appropriate citation from the ASC. b) the use of your own words rather than the text of the ASC to provide the simplest and clearest answer to the question.

Question 1: What are the basis requirements that are applied in accounting for income taxes at the date of the financial statements?

Question 2: Provide on example each of a futue taxable difference, and a future deductible difference.

Question 3: What is the applicable tax rate used to measure deferred taxes?