Question 5 The records for Wildhorse Co. show this data for 2021: Gross profit on installment sales recorded on the books was $400,000. Gross profit from collections of installment receivables was $250,000. Life insurance on officers was $3,100. Machinery was acquired in January for $230,000. Straight-line depreciation over a ten-year life (no salvage value) is used. For tax purposes, MACRS depreciation is used and Wildhorse may deduct 14% for 2021. Interest received on tax exempt Iowa State bonds was $8,100. The estimated warranty liability related to 2021 sales was $21,200. Repair costs under warranties during 2021 were $12,900. The remainder will be incurred in 2022. Pretax financial income is $540,000. The tax rate is 20%. Prepare a schedule starting with pretax financial income and compute taxable income. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Schedule of Pretax Financial Income and Taxable Income for 2021 Prepare the journal entry to record income taxes for 2021. (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 o for the amounts.) Account Titles and Explanation Debit Credit