The accounting (not the income tax) records of Consolidated Publications, Inc., provide the comparative income statement for 2010 and 2011, respectively:

Taxable income for 2010 includes these modifications from pretax accounting income:
a. Additional taxable income of $13,000 for accounting income earned in 2011 but taxed in 2010.
b. Additional depreciation expense of $40,000 for MACRS tax depreciation.
The income tax rate is 35%.

Requirements
1. Compute Consolidated€™s taxable income for 2010.
2. Journalize the corporations€™ income taxes for 2010.
3. Prepare the corporations income statement for2010.

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2010 2011 Total revenue Expenses: $920,000 $1,010,000 Cost of goods sold Operating expenses.. Total expenses before tax.740,000 $470,000 500,000 280,000 780,000 $180,000 230,000 270,000