The pretax financial income of Parker-Gregory Company differs from its taxable income throughout each of 4 years as follows.Pretax financial income for each year includes a nondeductible expense of $30,000 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2008.Instructions(a) Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 40% was not enacted until the beginning of 2009.(b) Prepare the income statement for 2009, beginning with income before incometaxes.
The pretax financial income of Parker Gregory Company differs fr