Zekany Corporation would have had identical income before taxes on both its income tax returns and income statements for the years $2024$ through $2027$ except for differences in depreciation on an operational asset. The asset cost $$120,000$ and is depreciated for income tax purposes in the following amounts:

$2024$ $ $39,600$

$202552,800$

$202618,000$

$20279,600$

The operational asset has a four$-$year life and no residual value. The straight$-$line method is used for financial reporting purposes.

Income amounts before depreciation expense and income taxes for each of the four years were as follows:

$2024202520262027$

Accounting income before taxes and depreciation $ $60,000$ $ $80,000$ $ $70,000$ $ $70,000$

Assume the income tax rate for $2024$ and $2025$ was $30\%$; however, during $2025,$ tax legislation was passed to raise the tax rate to $40\%$ beginning in $2026.$ The $40\%$ rate remained in effect through the years $2026$ and $2027.$ Both the accounting and income tax periods end December $31.$