how do I compute the 2018 taxable income with this information
Priority Air is nearing the completion of the financial reporting tasks for the year endingDecember 31 , 2018 . Information related to accounting for income taxes is as follows :".Financial accounting depreciates assets using straight – line depreciation . The tax return*computes depreciation expense using an accelerated depreciation method . In 2018 the taxreturn recorded excess depreciation of $32,000 .Interest revenue on Decorah Community School District bonds was $5, 000 in 2018..Priority Air paid the State Department of Transportation $10.000 in fines and penalties foroverweight semi – truck’s stopped during traffic checks on Interstate Highway 29.Priority Air sells electronic equipment with a two year warranty . The estimated warrantyexpense recorded in the 2018 Financial statements for the 2018 sales was $24, 000. PriorityAir paid $17, 000 of actual costs for customer warranty claims in 2018 . Experience indicatesthe warranty claims occur evenly over the two period following the product sale .Priority Air collected $ 27 ,000 in advance from customers in 2017 . Those sales werecompleted and the revenue earned in 2018 . No customers paid in advance in 2018 .Income before income taxes is $ 246,000 in 2018 . The tax rate is 21 %/“The 21%’ tax rate was enacted in 2017 and is expected to remain the same until 2027 ..The company is expected to sustain profitability in the future .Deferred Tax Assets at January 1 , 2018 were $ 1 1, 550 on $33, 000 of cumulative futuredeductible differences .Deferred Tax Liabilities at January 1 , 2018′ were $21, 000 on $60, 000 of cumulative future*taxable differences.Questions*1 . Compute 2018 taxable income .