The accounting records of Marigold Inc. show the following data for 2020 (its first year of operations).

1.		Life insurance expense on officers was $9,000.
2.		Equipment was acquired in early January for $311,000. Straight-line depreciation over a 5-year life is used, with no salvage value. For tax purposes, Marigold used a 30% rate to calculate depreciation.
3.		Interest revenue on State of New York bonds totaled $4,100.
4.		Product warranties were estimated to be $50,900 in 2020. Actual repair and labor costs related to the warranties in 2020 were $10,400. The remainder is estimated to be paid evenly in 2021 and 2022.
5.		Gross profit on an accrual basis was $92,000. For tax purposes, $70,000 was recorded on the installment-sales method.
6.		Fines incurred for pollution violations were $4,300.
7.		Pretax financial income was $687,200. The tax rate is 30%.

(a)

Prepare a schedule starting with pretax financial income in 2020 and ending with taxable income in 2020.

Schedule of Pretax Financial Income and Taxable Income for 2020
Pretax financial income		$
Permanent differences
Repair and Labor CostsBond Interest RevenueDepreciation ExpensePollution FinesInstallment SalesWarranty ExpenseInsurance ExpenseInterest Expense
Repair and Labor CostsBond Interest RevenueWarranty ExpenseInterest ExpenseInsurance ExpenseDepreciation ExpensePollution FinesInstallment Sales
Insurance ExpenseInstallment SalesRepair and Labor CostsBond Interest RevenueInterest ExpensePollution FinesWarranty ExpenseDepreciation Expense
Temporary differences
Bond Interest RevenueRepair and Labor CostsPollution FinesDepreciation ExpenseInsurance ExpenseInstallment SalesInterest ExpenseWarranty Expense
Warranty ExpenseInsurance ExpenseDepreciation ExpensePollution FinesRepair and Labor CostsBond Interest RevenueInterest ExpenseInstallment Sales
Interest ExpenseWarranty ExpenseRepair and Labor CostsPollution FinesInstallment SalesBond Interest RevenueDepreciation ExpenseInsurance Expense
Taxable income