3. At the end of its first year of operations on December 31, 2014, the Arlington Company reports pretax financial income of $153,000. Other information relevant to taxable income is: Warranty expense for financial reporting purposes $14,000 Warranty repairs were made during the year 2,000 Interest on municipal bonds was received in 2014 6,000 MACRS depreciation deducted for tax purposes in 15,000 excess of depreciation for financial reporting purposes Officers Life Insurance Expense 2,000 Assume that any deferred tax assets are considered more likely than not to be realized. The enacted income tax rate for all years is 30%. Required: a. Compute Taxable Income b. Prepare the entry or entries to record income tax expense and any related deferred tax assets and liabilities for 2014 c. What is the total amount of income tax expense for financial reporting in 2014? 16