a) Prepare a Schedule starting with pretax financial income and compute taxable income.

b) prepare the journal entry to record income tax for 2017.

Thank you

The records for Butch Co. show this data for 2017: Gross ded on the books was $360,000, Gross profit from collections of 7 installment receivables was $240,000 Life insurance on officers was $2.000 Machinery was acquired in January for $300,000. sprofit on installment sales recor traight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes , MACRS depreciation is used and Bosch may deduct $42,000 for 201 Interest received on tax exempt lowa State bonds was $9,000 e estimated warranty liability related to 2017 sales was $20,000. Repair costs paid under warranties during 2017 were $12,000. The remainder will be incurred in 2018. Pretax financial income is $500.00 The enacted tax rate is 30%