Big-Deal Construction Company specializes in building dams.
Big-Deal Construction Company specializes in building dams. During Years 3, 4, and 5, three dams were completed. The first dam was started in Year 1 and completed in Year 3 at a profit before income taxes of $240,000. The second and third dams were started in Year 2. The second dam was completed in Year 4 at a profit before income taxes of $252,000, and the third dam was completed in Year 5 at a profit before income taxes of $300,000. The company uses percentage-of-completion accounting for financial reporting and the completed-contract method of accounting for income tax purposes. The applicable income tax rate is 50% for each of the Years 1 through 5. Create a table outlining the year 1-5 numbers. One with total book income, one with total taxable income, and then show the difference between the two.
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