The accounting records of Martinez Inc. show the following data for 2020 (its first year of operations). 1. Life insurance expense on officers was $8,500. 2. Equipment was acquired in early January for $312,000. Straight-line depreciation over a 5 -year life is used, with no salvage value. For tax purposes, Martinez 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 $51,800 in 2020 . Actual repair and labor costs related to the warranties in 2020 were $9,400. The remainder is estimated to be paid evenly in 2021 and 2022. 5. Gross profit on an accrual basis was $93,000. For tax purposes, $73,400 was recorded on the installment-sales method. 6. Fines incurred for pollution violations were $4,300. 7. Pretax financial income was $717,700. The tax rate is 30%. Account Titles and Explanation Income Tax Expense \begin{tabular}{l} Debit \\ \hline 217830 \end{tabular} Deferred Tax Asset Income Tax Payable: Deferred Tax Liability