Sunland Co. at the end of 2021, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $405,000 Extra depreciation taken for tax purposes (1,011,000) Estimated expenses deductible for taxes when paid 875,000 Taxable income $269,000 Use of the depreciable assets will result in taxable amounts of $337,000 in each of the next three years. The estimated litigation expenses of $875,000 will be deductible in 2024 when settlement is expected. (a) Prepare a schedule of future taxable and deductible amounts. (Enter negative amounts using either a negative sign preceding the number e.g. -45
Sunland Co. at the end of 2021, its first year of operations, prepared a reconciliation between pretax financial income and taxable income as follows: Pretax financial income $405,000 Extra
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