The accounting records of Flounder Inc. show the following data for 2017 (its first year of operations). 1. Life insurance expense on officers was $13,000 2. Equipment was acquired in early January for $318,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, 3. Interest revenue on State of Iowa bonds totaled $4,000 4. Product warranties were estimated to be $46,000 in 2017. Actual repair and labor costs related to the warranties in 2017 were $9,000. The 5. Pretax financial income was $907,000. The tax rate is 30%. Flounder used a 30% rate to calculate depreciation. remainder is estimated to be paid evenly in 2018 and 2019