1 04 DepartmentoftheTlsasurywintemalRevmueSewice cfw_99)
ll.S Individual income Tax Return
OMB No. 1545-0674 iRS UsoOnlyElo not write orsmle in this space.
For the year Jan. 1Dec. a1, 2015, or other tax year begi-mirig , 2015, ending , 20
Gallo Light began operations in 2016. The company sometimes sells used warehouses on an installment
basis. In those cases, Gallo Light reports income in its income statement in the year of the sale. In its
income tax return, though, Gallo Light reports in
Roberts Corp. reports pretax accounting income of $216,000, but due to a single temporary difference,
taxable income is only $158,000. At the beginning of the year, no temporary differences existed. Roberts
is subject to a tax rate of 40%.