Presented below is information related to Pinecone Inc. operations for $2020$ :

Life insurance expense on officers was $$7,000.$

Equipment was acquired in carly lanuary for $$55000$ Straight$-$line depreciation over a $6-$year life is used, with no salvage value. For tax purposes, Pinecone used a $30\%$ rate to calculate depriciation.

Interest revenue on municipal bunds totaled $53,600.$

Product warranties were ctimsted to be $$90,000$ in $2020.$ Actual repair and labor costs related to the warranties in $2020$ were $$24,000.$ The rematinder is cetinated to be paid evenly in $2021$ and $2022$

Sales on an accrual basis wene $$50,000.$ For thx purposes, $$400,000$ was recorded on the installment$-$sales method.

Fines incurred for tecurities Miolations were $$10,600.$

Pretax financial income was s$4$tojo$00.$ The tax rate is $30\%.$

Required: Prepare a schedule starting with financial income for $2020$ and ending with taxable income for $2020$ and prepare the iournal entry to record income taxes for $2020.$

COMPUTE TAXABLE INCOME

PFIEPARE THE JDUPNAL ENTPY