3. The records for Graham Co show this data for 2021: i. Installment sales of $400,000 were recognized on the accrual basis for financial statement reporting. Only the $260,000 that was collected during 2021 was recognized for tax purposes. ii. A penalty was paid for unpaid taxes in a previous year in the amount of $1,700. iii. Machinery was acquired in January for $135,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, MACRS depreciation is used and Blake may deduct 14% for 2021. iv. Interest received on tax exempt Kansas state bonds was $2,500. v. The estimated warranty liability related to 2021 sales was $22,000. Repair costs under warranties incurred during 2021 were $13,000. The remainder will be incurred in 2022. vi. Pretax financial income is $300,000. The tax rate is 30%. Required: Prepare a schedule starting with pretax financial income and compute taxable income.