19 - 20 Student Study Guide for Intermediate Accounting, 17th Edition 2. (L.O. 1) Heiden Company reported the following net income before taxes and depreciation for the years indicated. 2019: $80,000 2020: $100,000 2021: $75,000 The Company purchased assets costing $90,000 on January 1, 2019. The assets have a three- year useful life and no salvage value. For tax purposes the Company used an acceptable accelerated depreciation method that resulted in depreciation expense of $45,000; $30,000; and $15,000 for the three years respectively. For financial reporting purposes the straight-line method was used. A 30% tax rate was in effect for the three years. Instructions: Prepare the necessary calculations and make the end of year entries for the Heiden Company for the years 2019, 2020, 2021. 2019 2020 2021 Acct. Tax Acct. Tax Acct. Tax Income before tax and depreciation Depreciation expense Subtotal Income tax - 1 1 1 1