Infinity Production Acquired a New Machine at the Beginning of the Current

Infinity Production acquired a new machine at the beginning of the current year. The machine cost $720,000 with no residual value expected. Infinity uses the straight-line method for financial reporting, assuming a 6-year useful life. The firm classifies the equipment as 5-year MACRS property for tax purposes using the following percentages.
$\begin{array}{ll}\underline{\text { Year} } &\underline{ \text { MACRS }(\%) }\\1 & 20.00 \% \\2 & 32.00 \\3 & 19.20 \\4 & 11.52 \\5 & 11.52 \\6 & 5.76\end{array}$

The company is subject to a 40% income tax rate and has no other book-tax differences. Income before depreciation and tax is presented below:
$$\begin{array} { | l | c | } \hline \text { Year } & \begin{array} { c } \text { Income before } \\\text { Tax and } \\\text { Depreciation }\end{array} \\ \hline 1 & \$ 400,000 \\\hline 2 & 450,000 \\\hline 3 & 520,000 \\\hline 4 & 700,000 \\\hline 5 & 820,000 \\\hline6&950\\\hline\end{array}$$
Complete the following table for Infinity Production.
$$\begin{array} { | c | c | c | c | c | c | c | } \hline \text { Year } & \begin{array} { c } \text { Book } \\\text { depreciation }\end{array} & \begin{array} { c } \text { Tax } \\\text { depreciation }\end{array} & \begin{array} { c } \text { Book } \\\text { income } \\\text { before tax }\end{array} & \begin{array} { c } \text { Taxable } \\\text { income } \\\text { before tax }\end{array} & \begin{array} { c } \text { Income tax } \\\text { expense }\end{array} & \begin{array} { c } \text { Deferred }\\\text { tax liability } \\\text { balance }\end{array} \\\hline 1 & & & & & & \\\hline 2 & & & & & & \\\hline 3 & & & & & & \\\hline 4 & & & & & & \\\hline 5 & & & & & & \\\hline 6 & & & & & & \\\hline\end{array}$$