Button Company has two temporary differences between its income tax expense and income taxes payable

E19-8 (Two Temporary Differences, One Rate, 3 years) Button Company has two temporary differences between its income tax expense and income taxes payable. The information is shown on page 1004.

2007 2008 2009
Personal Financial income $840,000 $910,000 $945,000
Excess depreciation expense on tax return (30,000) (40,000) (10,000)
Excess warranty expense in financial income 20,000 10,000 8,000
Taxable Income 830,000 880,000 943,000

Income tax rate for all years = 40%

Prepare the income tax expense sectin of the income statement for 2009, beginning with the line "Pretax financial income."


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