Current Attempt in Progress The accounting records of Marin Inc. show the following data for 2020 (its first year of operations). 1. 2. 3. 4. Life insurance expense on officers was $8,100. Equipment was acquired in early January for $315,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Marin used a 30% rate to calculate depreciation. Interest revenue on State of New York bonds totaled $4,200. Product warranties were estimated to be $53,100 in 2020. Actual repair and labor costs related to the warranties in 2020 were $9,800. The remainder is estimated to be paid evenly in 2021 and 2022. Gross profit on an accrual basis was $103,000. For tax purposes, $77,000 was recorded on the installment-sales method. Fines incurred for pollution violations were $4,800. Pretax financial income was $811,900. The tax rate is 30%. 5. 6. 7. (a) Your answer has been saved. See score details after the due date. 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 $ 811900 Permanent differences Bond Interest Revenue -4200 Pollution Fines 4800 Insurance Expense 8100 820600 Temporary differences Depreciation Expense -31500 Installment Sales -26000 Warranty Expense 43300 Taxable income 806400 Attempts: 1 of 1 used Attempts: 1 of 1 used (b) Prepare the journal entry for 2020 to record income taxes payable, income tax expense, and deferred income taxes. (Credit account titles 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 Ofor the amounts.) Account Titles and Explanation Debit Credit Save for Later Attempts: 0 of 1 used Submit