The accounting (not the income tax) records of Crowley 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 $18,000 for accounting income earned in 2011 but taxed in 2010.
b. Additional depreciation expense of $30,000 for MACRS tax depreciation.
The income tax rate is 30%.

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

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2010 2011 Expenses: $410,000 440,000 300,000 740,000 Pretax accounting income$230,000 280,000 Cost of goods sold.. Total expenses before tax..700,000