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2017 2018 Pretax financial income Excess depreciation expense on tax return Excess warranty expense in financial income Taxable income $867,000 $864,000 $990,000 30,100) (41,400) (9,700) 20,200 10,500 8,300 $857,100 $833,100 $988,600 The income tax rate for all years is 40%.

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C. Income Statement(Partial) 2 Pre tax Financial Income $9,90,000.00 Income Tax Expense 4 Current Tax 5 Deferred Tax $3,95,440.00 -560.00 $ 3,94,880.00 $5,95,120.00 8 Net Income 9 10 11 Opening Deferred Tax Liability Year 2017 Year 2018 Year 2019 $ -3,960.00 -16,320.00 12 Increase/(decrease) in the year $-3,960.00 $-12,360.00$-560.00 S-3,960.00 $-16,320.00 $-16,880.00 13 Closing deffered tax liability

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