Problem 19-4 The accounting records of Larkspur Inc. show the following data for 2017 (its first year of operations) 1. Life insurance expense on officers was $9,500 2. Equipment was acquired in early January for $307,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Larkspur used a 30% rate to calculate depreciation 3. Interest revenue on State of New York bonds totaled $3,700. 4. Product warranties were estimated to be $50,900 in 2017. Actual repair and labor costs related to the warranties in 2017 were $11,000. The remainder is estimated to be paid evenly in 2018 and 2019 5. Gross profit on an accrual basis was $96,000. For tax purposes, $80,600 was recorded on the installment-sales method 6. Fines incurred for pollution violations were $4,100. 7, Pretax financial income was $739,300. The tax rate is 30%