Bosch Inc., reported the following results for the current year.

Book income (Net after tax) $600,000

Details:

Salary Expense $330,000

Book Depreciation $125,000

Tax depreciation $200,000

Warranty expense, not deductible currently but maybe in the next few years as clients collect $17,500

Charitable contributions of $15,000

Municipal bond interest income $10,000

Government Penalties $2,000

Estimated Federal Income taxes paid during the year $100,000

Entertainment $3,000

Insurance $1,000

Bosch also had carryforward losses accumulated of $1,000,000 (1million), how are these treated?

Identify any temporary or permanent book-tax differences and explain.

Determine and calculate Boschs taxable income for the current year to be reported on Form 1120.