For the year ended Dec 31, 2019, King Inc. reported pretax accounting income of $700,000. Select information is listed below:

1) In 2019, the company completed a sales contract on an installment sale basis. $500,000 was recognized for financial reporting purpose. Only $175,000 was reported on the 2019 tax return. The installment sale receivable had a balance of zero at the beginning of 2019.

2) In 2019, the company purchased a piece of equipment with a cost of $600,000. For financial reporting purposes, the company used the straight-line method over a 5-year service life with no residual value expected. For tax purposes, the equipment was scheduled to be depreciated by $140,000, $180,000, $200,000, $50,000 and $30,000 in years 2019 through 2023, respectively.

3) During 2019, warranty expense accrued for financial reporting purpose was $70,000, and the amount actually spent for warranty purpose was $45,000.

4) In 2019, the company incurred $30,000 to pay for the life insurance of its CEO. Any amounts related to executive life insurance policies are not included for tax purposes.

King Inc.'s income tax rate is 20%. 2019 was the first year of operation for King Inc.

Required:

1. What is taxable income for 2019? Use the following template.

Current Future

2019 DTA DTL