Patrick and Robert started a new manufacturing business March 1, 2021. The company, PR Manufacturing, is an accrual basis taxpayer with a calendar year-end. Advertising Expense Book Depreciation: Charitable donations Cost of Goods Sold Dividend Income Late fees and fines Interest income $1,490,000 straight line 250,000 26,930,000 128,000 7,900 30,000 Life insurance premiums on Patrick&Robert 34,000 Loss from disposition of fixed assets Meals Other expenses Payroll Tax expense Political Contributions Rent Repairs and Maintenance 3,000 28,000 240,000 684,000 25,000 92,000 75,000 Revenue from sales Salaries Expense $40,860,000 8,540,000 Season tickets, entertainment expense 55,000 Short-term capital loss Tax Depreciation: Warranty expenses (4,000) maximize 170,000 Purchased the following assets: Equipment November 1 $ 380,000 Machinery March 30 $ 430,000 Computer system March 4 Office building Equipment March 1 $1,550,000 Feb 1 $ 635,000 $ 164,000 sold in Dec for loss 1. PR Mfg owns 30% of the outstanding DMC Corporation (DMC) stock. DMC distributed a $128,000 dividend to PR Mfg. 2. Of the $20,000 interest income, $8,000 was from a City of Erie bond, $3,000 was from a Cleveland City bond, $12,000 was from a taxable corporate bond, and the remaining $7,000 was from a money market account. 3. Key man life insurance policies were purchased for Partrick and Robert. PR Mfg is the beneficiary of each policy. 4. This loss is from equipment that PR Mfg purchased in February and sold in December. 5. In the current year, PR Mfg made $55,000 of actual payments on warranties it provided to customers. The remainder is the accrued expense for the current year. 6. PR Mfg made $250,000 of cash contributions to qualified charities during the year. The donations are qualified charitable contributions.