1. 2. Problem 19-04 The accounting records of Flounder Inc. show the following data for 2020 (its first year of operations). Life insurance expense on officers was $9,900. Equipment was acquired in early January for $288,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Flounder used a 30% rate to calculate depreciation. 3. Interest revenue on State of New York bonds totaled $4,300. Product warranties were estimated to be $51,100 in 2020. Actual repair and labor costs related to the warranties in 2020 were $9,300. The remainder is estimated to be paid evenly in 2021 and 2022. Gross profit on an accrual basis was $110,000. For tax purposes, $73,200 was recorded on the installment-sales method. Fines incurred for pollution violations were $4,500. 7. Pretax financial income was $713,600. The tax rate is 30%. 4. 5. 6. Your answer is partially correct. Try again. Prepare a schedule starting with pretax financial income in 2020 and ending with taxable income in 2020. Schedule of Pretax Financial Income and Taxable Income for 2020 Pretax financial income 713600 Permanent differences Bond Interest Revenue 4300 Insurance Expense 9900 Pollution Fines 4500 732300 Temporary differences Depreciation Expense -288000 Installment Sales 73200 Warranty Expense 51100 Taxable income -163700 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT Your answer is incorrect. Try again. Prepare the journal entry for 2021 to record income taxes payable, income tax expense, and deferred income taxes. (Credit account tities are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Debit Credit Click if you would like to show Work for this question: Open Show Work SHOW ANSWER SHOW LIST OF ACCOUNTS SHOW SOLUTION LINK TO TEXT LINK TO TEXT LINK TO TEXT