Deferred Tax Calculations (Appendix)
Wyhowski Inc. reported income from operations, before taxes, for 2015-2017 as follows:
2015: $197,000
2016: $225,000
2017: $264,000
When calculating income, Wyhowski deducted depreciation on plant equipment. The equipment was purchased on January 1, 2015, at a cost of $82,000. The equipment is expected to last three years and have a salvage value of $7,000. Wyhowski uses straight-line depreciation for book purposes. For tax purposes, depreciation on the equipment is $47,000 in 2015, $19,000 in 2016, and $9,000 in 2017. Wyhowski's tax rate is 35%.
Required:
Enter all amounts as positive numbers.
1. How much did Wyhowski pay in income tax each year? If required, round all calculations to the nearest dollar.
Year
Taxes Paid
2015: $fill in the blank 1
2016: $fill in the blank 2
2017: $fill in the blank 3